… assures customers of safety of deposits
By Chioma Obinagwam
The Nigeria Deposit Insurance Corporation (NDIC) has said it has began the process of liquidation of the defunct Skye Bank.
This was disclosed in a statement issued by the Corporation’s Head, Communications and Public Affairs, Mohammed Ibrahim at the weekend.
“…while the operating license of SKYE has been revoked by the Governor of the Central Bank of Nigeria and the NDIC has commenced the processes for its liquidation,” the statement revealed.
Liquidation is the winding up of a firm by selling off its free (un-pledged) assets to convert them into cash to pay the firm’s unsecured creditors; an event that occurs when a company is insolvent, meaning it cannot pay it’s obligations when they come due.
This is coming on the heels of the recent takeover of the bank by the Central Bank of Nigeria (CBN), Nigeria’s Apex bank, due to its unacceptable corporate governance lapses as well as the persistent failure of the bank to meet minimum thresholds in critical prudential and adequacy ratios.
Subsequently, Skye Bank was renamed Polaris Bank and opened for business on Monday, September 24, 2018.
In the light of the above, NDIC assured customers of the bank of safety of their deposits.
” 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 explained.
“The NDIC hereby assures 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,” it continued.
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