The Central Bank of Nigeria CBN
has today taken over Skye Bank PLC following the apex bank’s resolve to take
over the management of the bank after it deems the bank unhealthy and capital
inadequacy issues in order to prevent a complete collapse of the bank. The CBN
will also find a buyer for the foremost commercial bank in Nigeria. The CBN
took the decision earlier today after it dissolved the board and management of the bank led by MD/CEO of the Bank Mr. Timothy
Oguntayo.
Timothy Oguntayo MD/CEO Skye Bank PLC
Skye bank is believed to have an
estimated non-performing loan portfolio of about N700billion most of which is
due to an over exposure in the oil and gas sector. All but three executive
directors who joined the bank in 2015 have been asked to resign following the imminent
take over. The managing Director of Skye Bank Timothy Oguntayo has already
tendered his resignation.
Copy of CBN letter to Skye Bank Management
The bank which has already been
taken over by the CBN and would be handed over to the Asset Management Company
Of Nigeria AMCON according to reports, AMCON would buy up the bank’s toxic loan
and then make efforts to recover them from the bank’s chronic debtors.Chief Executive of Skye Bank plc
Mr. Timothy Oguntayo led the bank to acquire nationalised lender Mainstreet
Bank in 2014 after the old bank was declared unfit to operate resigned before
the central bank announcement was made today.
The apex bank has last year gave
three commercial banks up till June 2016 to recapitalize after they failed to
hit a minimum capital adequacy rate of 10 percent and sources says Skye was
first on the list of the banks who were showing signs of weakness in operations
and capital inadequacy. Skye Bank according to inside sources says the bank was
in talk with shareholders to raise fresh capital of about N30 billion but was suspended
due to weak market conditions then.
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