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Tuesday, 5 July 2016

CBN TAKES OVER SKYE BANK, SACKS BOARD MEMBERS.

CBN Governor: Godwin Emefiele
Image:thisdaylive.com
The Central Bank of Nigeria(CBN) has dissolved and partially
taken over the management board at one of Nigeria's commercial
banks-Skye Bank. The Governor of the bank Godwin Emefiele disclosed in
a conference in Lagos on monday that the decision was reached after
CBN realised that Skye Bank Plc had failed to maintain the minimum key
liquidity and adequate capital ratios for a long period. Leading the
bank into a more "unhealthy condition."
Governor Emefiele said that a new board had been appointed for
the bank. The new Managing Director/CEO is Mr. Adetokunbo Abiru, a
Hazard Business School graduate who was the head of the investment
banking unit at FirstBank Plc. His appointment follows the resignation
of Group Managing Director-Timothy Oguntayo and Board
Chairman-Olatunde Ayeni.
The new board chairman is Muhammad K. Ahmad, the Pioneer Director
General of the National Pension Commission.
Governor Emefiele assured those present at the briefing in Lagos
that the appointments were solely to rescue the institution, before
things got to an irreversible point. He also announced the sacking of
all non-executive directors, independent directors,deputy managing
director and a couple of the longest serving executive directors at
the bank. Except for the most recently appointed executive directors,
who were only retained to aid continuity and seamless transition.
According to a report from Governor Emefiele, the 'proactive
moves' had to be taken after Skye Bank Plc consistently failed to meet
certain threshold requirements in 'prudential and adequacy ratios'.
Also the Bank's liquidity and non-performing loans have been at very
low levels for a long time. And this has resulted in Skye always
borrowing from the apex bank.
He also added, that reports from market watchers, financial analysts
and expectations from shareholders have shown that the bank should be
doing far better than now. And that CBN had met with the board of the
bank, he said a long grace period had been given to the bank, enough
for the former board and management to steer the ship aright. But
after all, the realisation had dawned in that the board was not
capable of salvaging the bank's critical condition. And so in the
interest of the bank "the chairman and some board members of the bank
have tendered their resignation".
Muhammad K. Ahmad, the new chairman of the bank is experienced
and well versed in the public sector with over three decades of
experience serving in financial services industry. He has been on the
board of many institutions and companies including banks. In a
statement after his appointment, Ahmad said that there were high hopes
that the Bank could attain glory again. He said that the bank had the
resources to deepen and expand commercial and retail services in the
banking sector and on a large scale-economy wise. He said that the
first mission of the board was to begin immediate restructuring of all
units at the bank. And also improve the trust of stakeholders again.
He stated his full commitments to preserve the interests and
investments of stakeholders.

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Ebube Emeka is a Nigerian undergraduate. He loves reading,writing and sharing his opinions on the web he also loves public speaking and meeting people. Top'n'trending is a site that offers the most trending news on politics, fashion,celebrity, happenings around the world and opinion on general matters such as relationships,finance,business sense,lifestyle...

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