Skye Bank Deemed Unhealthy As CBN Sacked MD, Top Management Staff

skye-bank hqThe Managing Director and some top management of Skye Bank Plc has been asked to resign today in anticipation of the planned dissolution of the board and management cadres by the Central Bank of Nigeria (CBN) which has discreetly worked on removing directors of some commercial banks that have demonstrated a level of distress in the last few months.

All the non-executive directors of the bank also resigned in anticipation of a clampdown by the CBN.

Saharareporters had revealed in November 2015 that at least nine commercial banks led by Skye Bank had issues with their liquidity and had been ordered by the Central Bank to raise fresh capital. The resignation of the management at Skye Bank was a pre-emptive action by the bank to avoid a total clampdown by the CBN as it plans to remove directors in banks with bad debts in the next few days.

Also New Telegraph reports that the CBN took the decision as Skye Bank has been deemed ‘unhealthy’ and is a measure to prevent a total collapse of the bank.

The bank is thought to have an estimated non-performing loan portfolio of N700bn, much of which is due to an overexposure in the oil and gas sector. All the directors and executives at the bank except three executives who joined the bank last year have been shown the door.

Managing Director of Skye Bank, Timothy Oguntayo has already dropped his resignation. The bank would be taken over by CBN and possibly handed over to the Asset Management Company of Nigeria, AMCON.

The newspaper reports that AMCON would buy up the bank’s toxic loan and then make efforts to recover them from the bank’s chronic debtors.

 

Credit: The Capital