cbn-skye

Skye Bank Plc appears to be in deep trouble at the moment. Many of their branches in Lagos were today besieged by depositors eager to withdraw their money.  The depositors are scared that the bank may go under.

Earlier in the day, People & Power reported (see the report HERE) that management staff of the bank had been gripped by fear over a story that was quietly going around that the Group Managing Director, Timothy Oguntayo had resigned in a pre-emptive move to avoid a sack by the CBN. The story also had it that the apex bank had sacked the top management.

Now, we can confirm that the Central Bank has sacked both the Board and Management of Skye Bank. CBN Governor, Godwin Emefiele announced today that both had been dissolved. He said, despite efforts made by the dissolved board to keep the bank afloat, it was clear that the efforts would not be able to change its dismal liquidity position.

Both liquidity and capital adequacy ratios of Skye Bank are said to be in very bad shape. The bank is also said to have a N700 billion portfolio of non-performing or bad loans.

Emefiele also announced that Alhaji M.K. Ahmad has been appointed as the new Chairman of the Board while Mr Tokunbo Abiru is the new Group Managing Director and Chief Executive Officer. However, the bank’s existing Executive Directors namely Bayo Sanni, Idris Yakubu, Markie Idowu and Abimbola Izu will continue in their positions.

The CBN governor re-assured the bank’s customers that no depositor would lose their money. Obviously, the customers need all the assurances they can get to save Skye Bank from a possible run.