Revocation of license: NSE suspends trading on Skye Bank shares

The Nigerian Stock Exchange (NSE) has notified the investing public that the shares of Skye Bank Plc will be suspended from trading on the floor of The Exchange effective Monday, 24 September 2018.

This action, according to the NSE is taken following on the recent regulatory action of the Central Bank of Nigeria revoking the banking license of Skye Bank and in exercise of the powers of The Exchange pursuant to the Rules on Suspension of Trading in Listed Securities, Rulebook of The Exchange.

The local bourse, however, promised that further developments would be communicated as appropriate in due course.

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Relevant regulatory body has said the need to ensure the safety of depositors’ funds propelled the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) to establish Polaris Bank to succeed just defunct Skye Bank.

In a released signed by NDIC’s Head of Communications and Public Affairs, Mohammed Ibrahim, The Corporation promised that customers of Skye Bank Plc can also continue to transact their businesses with Polaris Bank Limited.

It will be recalled that the CBN on Friday announced the revocation of the operating license of Skye Bank due to the inability of its shareholders to recapitalise it, having been living in the life-support of the apex bank since 2016.

NDIC explained that the capitalisation Polaris Bank Limited through the injection of N786 billion to return the bank was being done by the Assets Management Corporation of Nigeria (AMCON). This it said would allow the bank return to soundness and profitability to enable its subsequent sale to credible and financially sound third parties acquirers.

“Furthermore, the adoption of the Bridge Bank model for the resolution SKYE Bank Plc., guarantees that most of the employees of that bank will not lose their jobs and they will continue their employment with Polaris Bank Limited under fresh contracts of employment,” the NDIC asserted.

It assured depositors and customers of the defunct SKYE Bank PLC that their deposits are safe and hereby encourages them to continue to transact their normal banking business with Polaris Bank Limited

“The NDIC, as Deposit Insurer, acted to ensure the continued safety of depositor’s funds in furtherance of the regulatory authorities resolve to proactively manage potential threats to financial system stability,” it reiterated.