Afraid of the boot, “jittery” Skye Bank CEO, directors resign ahead of CBN “takeover”
The Central Bank of Nigeria, CBN, is about to take over the management of Skye Bank, reports say.
The move is reportedly a result of the bank’s capital adequacy issues.
To take over, the CBN would have to dissolve the existing board with all directors and executives, except three who joined the bank last year expected to lose their jobs.
The bank’s CEO, Timothy Oguntayo, has reportedly resigned his position, Monday morning, ahead of the CBN takeover.
All non-executive directors of the bank have also resigned ahead of the CBN’s expected move.
The bank, reports say, has an estimated non-performing loan of N700 billion, much of which is due to an overexposure in the oil and gas sector.
The CBN had, last year, given three commercial banks until June 2016 to recapitalise after they failed to hit a minimum capital adequacy rate of 10 percent.
The regulatory body is expected to take control of the bank anytime soon and might hand it over to the Asset Management Company of Nigeria, AMCON.
Should the bank be handed to AMCON, the company will buy its toxic loan and make efforts at their recovery. Such efforts usually translates to job losses which is the last thing anyone wants at the time..
