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The Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation (NDIC) have withdrawn the operating licence of Skye Bank Plc. with immediate effect. Godwin Emefiele, Governor of the CBN, said on Friday that a bridge bank, Polaris Bank, will take over the assets and liabilities of Skye Bank.

Umaru Ibrahim, Chairman of the NDIC, also made this known to journalists on Friday.

“The result of our examinations and forensic audit of the bank revealed that the Skye Bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN,” Emefiele told journalists at a press briefing today.

The CBN Governor assured all depositors that their deposits will remain safe and that normal banking services shall continue in the new bank on Monday, 24th September, 2018.

In July 2016, the CBN sacked Skye Bank’s board and management to avert a systemic threat. The CBN said then that its intervention was due to the bank's persistent failure to meet minimum liquidity and prudential requirements, thereby posing potential threats to the overall stability of the financial system.

The CBN subsequently extended an emergency loan to Skye Bank to inject liquidity into the troubled lender.

Emefiele said on Friday that although the bank’s performance has improved since July 2016, there was a need for the latest action to be taken.

The shares of Skye Bank will be temporarily suspended on the Nigerian Stock Exchange until Polaris Bank begins operations on Monday.

Skye Bank Plc was formed in 2006, following a merger of Prudent Merchant Bank Limited and four other lenders. In 2014, the bank acquired Mainstreet Bank Limited.