Money

Though times ahead for an ailing Skye Bank

 

Following the take over of Skye Bank by the Central Bank of Nigeria (CBN) today and the resignation of the Chairman and the Managing Direcror/Chief Executive Officer many Nigerians are scared that they wont may loose their hard earned savings deposited at bank. This development has caused many customers to withdraw their money from the bank.

As announced by the CBN governor, Godwin Emefiele in press conference today, the bank failed to meet with CBN’s minimum key liquidity and capital ratios. despite  countless warnings from the CBN.

In other to save depositors funds, the CBN sacked the board of the bank and appointed a new board  following the outstar of the Chairman, Tunde Ayeni, and Managing Director/Chief Executive Officer, Timothy Oguntayo .

The CBN has appointed M.K Ahmad as the new chairman, and Tokunbo Abiru as the new Managing Director/Chief Executive Officer.

Despite the CBN governor’s assurance to shareholders and customers that the bank is not in distress, many customers want to withdraw all their savings deposited at the bank.

The CBN cannot prevent an ensuing the mass withdrawal that has followed the announcement despite the assurance the the bank is not distressed. The timing of the announcement will prevent withdrawal of large sums from the bank due to the two-day  Eid-el Fitri public holiday. Huge withdrawals are expected on Thursday.

“I maintain that Skye Bank is not in distress. We have only taken this unavoidable decision to ensure that depositors’ funds are not eroded,” the CBNCBN governor said.

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