A source within Skye Bank has informed Reuters on Monday that the Central Bank of Nigeria, CBN, has decided to take over the management of Skye Bank so as to avoid it from collapsing totally.
A moment ago, we reported that the apex bank has dissolved the board and management of the financial institution.
The reason, according to reports gathered by Aproko247, is due to capital adequacy issues.
CBN is expected to take over the affairs of the bank on Monday.
The development comes as the bank has been deemed ‘unhealthy’ and is a measure to prevent a total collapse of the financial institution.
Chief Executive Timothy Oguntayo, who led Skye Bank to acquire nationalised lender Mainstreet Bank in 2014, resigned before a central bank announcement on Monday.
Skye Bank is thought to have an estimated non performing loan portfolio of N700 billion, much of which is due to an overexposure in the oil and gas sector. All the directors and executives at the bank save for three executives who joined the bank last year have been shown the door.
It remains unclear whether the Bank will eventually be nationalized but the CBN Governor, Godwin Emefiele, is expected to clear that up before the end of the week.
Last year, the central bank gave three commercial banks until June 2016 to recapitalise after they failed to hit a minimum capital adequacy rate of 10 percent.
