See what Nigerians are saying about the new Polaris Bank

The recent revocation of the license of Skye Bank by the Central Bank of Nigeria (CBN) has continued to generate divergent reactions from Nigerians. The Apex bank yesterday announced the establishment of a bridge bank, Polaris Bank, to take over activities of the now defunct Skye Bank.

Before we give you reactions from Nigerians, Here is a timeline of events leading to the new announcements.

  • The Apex Bank on 4th July, 2016 took regulatory action on Skye Bank Nigeria Plc.
  • This action led to the resignation of the Chairman, all Non-Executive Directors on the Board as well as the Managing Director, Deputy Managing Director, and the two longest serving Executive Directors on the Management Team.
  • According to CBN, the performance of the bank has improved considerably compared to the pre-July 2016 era.
  • However, result of examinations and forensic audit of the bank has revealed that Skye Bank requires urgent recapitalisation as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN. The shareholders of the bank have been unable to recapitalise it.
  • The apex bank has established a bridge bank, Polarise Bank, to assume assets and liabilities of Skye Bank.
  • This will enable the  Asset Management Company of Nigeria (AMCON) to capitalise the Bridge Bank and begin the process of sourcing investors to buy out AMCON.
  • Nigeria Deposit Insurance Company (NDIC)  has also injected N786 billion into the new bank.
  • Immediate effect of the announcement has kicked offstarting with replacement of old Skye bank Twitter handle avatar with that of Polaris bank –  a triple diagonal flat bar lying side by side on a purple background.
  • The official website of the bank seem like it is under reconstruction meanwhile, Polaris Bank logo takes up the entirety of the site.

The year 2005 saw the debut of what used to be known as Skye Bank, a product of merger of Prudent Bank Plc, EIB International Plc, Bond Bank Limited, Reliance Bank Limited and Co-operative Bank Plc. Skye Bank was popularly known as the “yes bank” and their captivating jingle still ring a bell.

Many Nigerians recorded the new development on a note of question:

The central bank and the management of new Polaris bank  maintained safety of customer’s  deposits alongside smooth transition that will in no way affect human resources, it however left  an  open door to anyone willing to opt out. Regardless, many still express fear, anxious over the new management. Many traced the long history of merger that led to the defunct of Skye Bank

Despite attempt by the apex bank to allay the fear hovering in the sky, the populace are still asking what the fate of Skye bank employees would be.

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Author: see naija

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