CBN Mandates New Board, Management To Ensure Speedy Recovery of Skye Bank | Independent Newspapers Limited
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CBN Mandates New Board, Management To Ensure Speedy Recovery of Skye Bank

CBN Resists Political Pressure, Retains Rates
Posted: Jul 8, 2016 at 3:56 pm   /   by   /   comments (0)

* Bank On Full Offers As Investors Dump ?200m Units

The Central Bank of Nigeria (CBN) has mandated the new team of Sky Bank to ensure the speedy restoration of the health and fortunes of the bank in the shortest possible time.

This was the major outcome of a private meeting between CBN and the new board and management of the bank.

This is the first formal meeting since a new management was announced by the Central Bank on Monday July 4, 2016 just before the financial markets closed for a three-day holiday.

The CBN took the decision in view of the persistent failure of Skye Bank to meet minimum thresholds in critical prudential and adequacy ratios.

In a press briefing held on Monday in Lagos, the CBN dissolved Skye Bank’s Board of Directors, the Chairman and Chief Executive Officer also resigned, while four non-executive directors were retained.

On Monday, Skye Bank shares fell 9.52 per cent to 95 kobo as investors sold almost 11 million shares of the lender whose 2015 financial statements are yet to be released to the market.

Meanwhile, minutes to the close of Friday’s trading, investors continued to dump their ?Skye Bank shares in a desperate flight to safety.

A total of 200.773 million units were on full offer at 87 kobo each, with only 1.043 million units, the first full trading day since Monday’s sacking of Timothy Oguntayo, chief executive and the none-executive members of the board by the Central Bank of Nigeria over liquidity issues.