Poor liquidity and increase in NPL cause CBN to sanctions Skye Bank directors and management

By Kayode Ogunwale

Central Bank of Nigeria (CBN) has attributed low liquidity and increase in Non Performing Loan (NPL) of Skye Bank Plc to the sanctioned of the bank board of directors and management.
Speaking at the press briefing in Lagos on Monday, the CBN Governor, Godwin Emefiele said CBN reconstituted the board of directors and management of Skye Bank following the bank’s persistent failure to meet its capital adequacy and liquidity thresholds.
Announcing changes in key positions on the board and management of the lender, the governor said, changes relate to the Chairman, all Non-Executive Directors on the Board as well as the Managing Director, Deputy Managing Director, and the two longest-serving Executive Directors on the Management Team.
“These proactive moves have become unavoidable in view of the persistent failure of Skye Bank Plc to meet minimum thresholds in critical prudential and adequacy ratios, which has culminated in the bank’s permanent presence at the CBN Lending Window. In particular, Skye Bank’s Liquidity and Non-performing Loan Ratios have been below and above the required thresholds, respectively, for quite a while,” Emefiele continued.
He disclosed that the Chairman of the Board of Directors of bank and it’s management resigned after trying fruitlessly to meet the requirements.
The CBN in its usual manner, took measures to contain the situation which led to the appointment of Mohammad Ahmad as the Chairman of the board and Tokunboh Abiru as the Managing Director of the company.
Other changes include the appointment of two Executive Directors and five Non-executive Directors.
Emefiele noted that the new appointees are charged with the sole responsibility of ensuring the speedy restoration of the health of the bank.
He however disclosed that the CBN decision does not mean that the health of the bank is been threatened and assured that depositors’ money as well as stakeholders’ interest are adequately protected.