The Nigeria Deposit Insurance Corporation (NDIC) on Saturday, September 22 disclosed that employees of the defunct Skye Bank Plc would be offered new contract terms under the management of Polaris Bank. The Punch reports that the corporation made this known in a statement through its the head communications and public affairs, Mohammed Kudu. The NDIC in the statement came after the revocation of the operating license of Skye Bank by the CBN, the NDIC has commenced the processes for its liquidation.
The statement read: “The NDIC carried out the Bridge Bank option to resolve the Skye Bank Plc in order make certain that its depositors are fully protected as their deposits with Polaris Bank limited remain insured under the NDIC Act. “The customers of Skye Bank Plc can also continue to transact their businesses with Polaris Bank Limited thereby ensuring the non-disruption of their banking transactions.
“Furthermore, the adoption of the Bridge Bank model for the resolution Skye Bank Plc, guarantees that most of the employees of that bank will not lose their jobs and they will continue their employment with POLARIS Bank Limited under fresh contracts of employment. “The NDIC, as deposit insurer, acted to ensure the continued safety of depositor’s funds and to proactively manage potential threats to financial system stability.”
The CBN governor, Godwin Emefiele, disclosed this during a news conference in Lagos. Emefiele said the decision had been reached following the inability of the owners of the bank to shore up the capital of the distressed bank which had earlier recieved a N350 billion intervention in July 2016. “Skye Bank requires urgent recapitalization as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN. According to him, “Skye Bank requires urgent recapitalization as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN.
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