CBN Gives Skye Bank Fresh N100bn Lifeline

Skye Bank Plc has received over N100bn in liquidity from the Central Bank of Nigeria since July 4 to shore up its operations, its new Managing Director, Mr. Tokunmbo Abiru, has said.

He told reporters that CBN staff had been working at the bank for two weeks to support the lender.

CBN had said it provided a loan to Skye Bank to boost its liquidity after it breached requirements on capital and lending, a development that made CBN replace its Board of Directors and management.

The short-term lending facility will allow new management to “ensure some withdrawals it suffered in the wake of the undue panic of last week do not adversely affect its operations,’’
the Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, had said in an emailed response to questions, Reuters reported.

He said the CBN had also issued guarantees to the bank’s depositors and creditors as a demonstration of its health.

The CBN had replaced the top managers of the bank earlier.

But while the regulator has moved to calm markets, saying Skye and the industry remained healthy, the bank’s stocks have been plunging to record lows. The CBN said it has no plan to sell Skye Bank.

The CBN guarantee will not only enhance Skye Bank’s interbank trading and activities; but will also provide assurance to the other banks to continue to deal with and trade with the bank’s instruments.