NDIC commences liquidation of Skye Bank Plc

Nigeria Deposit Insurance Corporation (NDIC) over the weekend said it has started the process for the liquidation of distressed Skye Bank Plc.
The apex regulator, the Central Bank of Nigeria (CBN) had on Friday revoked the operating license of Skye Bank Plc and handed its assets, liabilities and management to new bank, Polaris Bank Limited.
The Corporation also said that the resolution of Skye bank Plc was carried out through the Bridge Bank option in order to make certain that depositors are fully protected as their deposits with Polaris Bank limited remain insured under the NDIC Act.
The corporation added that the customers of Skye Bank Plc can also continue to transact their businesses with Polaris Bank Limited thereby ensuring the non-disruption of their banking transactions.
A statement issued by NDIC and signed by Head, Communications and public affairs, Mohammed Kudu Ibrahim, said Polaris Bank Limited (The Bridge Bank) was recapitalised by the Assets Management Corporation of Nigeria (AMCON) through the injection of N786 billion to return the bank to soundness and profitability to enable its subsequent sale to credible and financially sound third parties acquirers.
He said that Polaris Bank Limited has issued operating license by the CBN and has commenced banking business from the 21st of September 2018.
The statement, however said “The NDIC carried out the Bridge Bank option to resolve the Skye Bank Plc in order make certain that its depositors are fully protected as their deposits with Polaris Bank limited remain insured under the NDIC Act and the customers of Skye Bank Plc can also continue to transact their businesses with Polaris Bank Limited thereby ensuring the non-disruption of their banking transactions.” “Furthermore, the adoption of the Bridge Bank model for the resolution Skye Bank Plc., guarantees that most of the employees of that bank will not lose their jobs and they will continue their employment with POLARIS Bank Limited under fresh contracts of employment.” “The NDIC, as Deposit Insurer, acted to ensure the continued safety of depositor’s funds in furtherance of the regulatory authorities resolve to proactively manage potential threats to financial system stability.
“The NDIC hereby assures depositors and customers of the defunct Skye Bank Plc that their deposits are safe and hereby encourages them to continue to transact their normal banking business with Polaris Bank Limited