Central Bank Governor, Godwin Emefiele, in a statement made by the apex bank has expressed confidence in the management team of Polaris Bank.
The new bank comes into operation with the injection of a massive N786 billion by the Nigeria Deposit Insurance Corporation (NDIC) on Friday, September 21, 2018. This and a new name are the only changes that have been made.
Polaris bank is, therefore, a rebranding attempt to rescue Skye Bank, which the apex bank took over and nothing more.
Central Bank Governor, Godwin Emefiele in a statement on Friday, September 21, 2018, confirmed the safety of customers’ and depositors’ funds. The statement by the regulatory CBN also confirmed that ‘the existing Board, Management and Staff of the defunct Skye Bank has been retained for its good performance’
Skye Bank PLC had dealt with a series of difficulties, hinged on liquidity, capitalization, and profitability concerns for many years now. Friday, Sept 21 was the latest step-in by the CBN.
In 2016 when the bank’s board was sacked, the CBN released a statement stating: ‘These proactive moves have become unavoidable in view of the persistent failure of Skye Bank PLC to meet minimum thresholds in critical prudential and adequacy ratios, which has culminated in the bank’s permanent presence at the CBN lending window. In particular, Skye Bank’s liquidity and non-performing loan ratios have been below and above the required thresholds, respectively, for quite a while.’
On Friday, Sept 21, 2018, the last straw broke the camel’s back as it were and the CBN finally took over operations and rebranded the bank into Polaris Bank. However, the apex bank retained the management team for good performance and backed Abiru, the Managing Director, to lead it to profitable ways.
‘Our future will be hinged on strong corporate governance and with robust business operations, we’d build and enhance a sustainable enterprise that would be the pride of every stakeholder.’ Abiru said.
The NDIC, commenting on Polaris, said as Deposit Insurer, it acted to ensure the continued safety of depositors’ funds in furtherance of the regulatory authorities resolve to proactively manage potential threats to financial system stability.
All Customers are encouraged to continue relating with Polaris Bank as they have with Skye Bank. ‘Our customers are in for a better deal with Polaris Bank’ said Abiru.