CBN affirms confidence in Skye Bank, institutes guarantee line

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The Central Bank of Nigeria (CBN), has affirmed its confidence in Skye Bank Plc., through a guarantee line which ensures that withdrawals it suffered in the wake of the undue panic of last week does not adversely affect its operations.

This development analysts believe lends credence to the regulator’s earlier assertion that Skye Bank is a Strategically Important Bank (SIB), with substantial market share, interconnectedness and significant relevance to the nation’s financial systems stability.

A leading international news organisation, Bloomberg, reports that the apex bank confirmed this development through a statement by the CBN spokesman, Isaac Okoroafor who stated that the undisclosed guarantee sum would assist the bank to shore up its liquidity and maintain its level of operations.

“The short-term lending facility will allow the management of the bank to ensure that some withdrawals it suffered in the wake of the undue panic of last week do not adversely affect its operations,” Okoroafor said.

In addition, “the CBN issued guarantees to depositors and creditors of Skye Bank as a demonstration of the bank’s health,” Okoroafor further explained.

The guarantee line is coming on the heels of CBN’s recent intervention in the bank following the voluntary resignation of the Board of Directors of the bank and the consequent re-constitution of the board with a new management team.

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