Skye Bank Remains Healthy, Strong- Abiru | Independent Newspapers Limited
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Skye Bank Remains Healthy, Strong- Abiru

Posted: Jul 8, 2016 at 2:18 pm   /   by   /   comments (0)

The new Group Managing Director/CEO of Skye Bank, Mr. Tokunbo Abiru, has affirmed the CBN’s statement that the bank remains healthy and strong.

Abiru, in a statement issued after taking over from his predecessor Mr. Timothy Oguntayo, said that the bank’s fundamentals remained strong and virile, assuring customers and other stakeholders of the safety of their funds and investments.

The new Skye Bank boss said his team would leverage on the bank’s reputable information technology platform to make it not just a frontline retail and commercial bank, but an industry leader.

Abiru, who outlined his vision for the bank, said his team would harness the expertise and skills set of the bank’s employees and the reconstituted board to take the bank to newer and higher heights.

He noted that being a systematically important bank (SIB), Skye Bank occupies a sensitive role in the financial life of Nigeria and West Africa.

The CBN on Monday approved the reconstitution of the board of Skye Bank, with the appointment of Alhaji M.K. Ahmad and Abiru as the new chairman and managing director, respectively.

Other members of the reconstituted board are Bayo Sanni, Idris Yakubu, Markie Idowu and Abimbola Izu, all of whom were executive directors of the bank before the intervention by the CBN.

Emefiele on Monday had noted that the bank’s liquidity situation was such that it has a permanent presence at the CBN discount window, where banks resort to when they run out of cash.

Stressing that the bank is not in distress, he said key ratios such as non performing loans, capital adequacy ratio and liquidity situation of the bank had warranted the step taken by the apex bank.

His words: “We have seen since around late 2013 into 2014 and 2015 is that these prudential and adequacy ratios have been weakening and we thought it is not right for us for allow these to weaken to the point where it becomes irreversible situation and that is why we decided to take this action.

“It has nothing to do with being distressed. What we are trying to say is that we don’t want the prudential ratios of this bank to get to a situation where depositors’ funds get into risk and that is why this is happening.

“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.

“To correct the anomalies in the bank, the CBN had several meetings with the management and board of Skye bank as part of our strategy of close engagement whenever a bank’s financial or governance situation poses potential threats to the overall stability of our financial system. Despite the expectation of relevant regulators, market watchers, financial analysts and interested stakeholders that Skye Bank should be doing much better than it is right now, we have seen about the opposite in reality”.