JULY 4, 2016 – Skye Bank becomes the first Nigerian bank in recent times to feel the brunt of banking regulations as the Central Bank of Nigeria, CBN, dissolved its board and sacked the management team.
Chief Executive Timothy Oguntayo, who led Skye Bank to acquire nationalised lender Mainstreet Bank in 2014, resigned before a central bank announcement on Monday, the source added.
Last year, the central bank gave three commercial banks until June 2016 to recapitalise after they failed to hit a minimum capital adequacy rate of 10 percent.
The bank’s, board was sacked on corporate governance default as well as a N120 billion insiders loan which effectively rendered it technically insolvent, according to close sources.
It’s understood that the CBN is looking at three other banks for similar actions. The three banks, including Skye Bank, has a non performing loan in excess of N700 billion Naira. Most Nigerian bank’s have huge exposures to the oil sector players as well as electricity sector.
Banking Sector watchers say the sack came after the bank’s liquidity problem became a big headache to the CBN
