The Nigeria Deposit Insurance Corporation (NDIC), on Friday night said it played its role of deposit insurer, following revocation of the operating license of Skye Bank Plc “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.”
In a statement by Mohammed Kudu Ibrahim, its spokesman, the corporation, said in consultation with the Central Bank of Nigeria (CBN), it organized and incorporated POLARIS Bank Limited, a bridge bank, to assume the deposit and other liabilities of the SKYE BANK PLC and acquire its assets.
He urged depositors and customers “to continue to transact their normal banking business with POLARIS Bank Limited when it begins operation on Monday, September 21, 2018.
Following the revocation, the NDIC said it has immediately “commenced the processes for its liquidation.”
To ensure continued business as bridge bank, the corporation said Polaris Bank has been recapitalized “by the Assets Management Corporation of Nigeria (AMCON) through the injection of N786bn to return the bank to soundness and profitability to enable its subsequent sale to credible and financially sound third-party acquirers.”
Ibrahim said “the NDIC carried out the Bridge Bank option to resolve the SKYE Bank Plc to make certain that its depositors are fully protected as their deposits with Polaris Bank limited remain insured under the NDIC Act (just as) 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.