Financial industry watchers have continued to ponder over the sudden
resignation of the key Board members of Skye Bank and the appointment of
new ones by the Central Bank of Nigeria and the verdicts of top level
bankers is that the development portends a dangerous and disturbing signal
for the financial industry.
A senior management staff of one of the first generation money deposit
banks who expressed worries in an interview with our correspondent said:
‘I think Central Bank’s move is not the best in the circumstance. Let’s
assume that truly Syke Bank has liquidity issue and is beset with capital
inadequacy challenges, what would it have caused the CBN to provide the
necessary life line while the investors/shareholders put their house in
order. If the CBN had taken this measure, the bank would have been able to
swim out of this turbulence and this would have ensured stability in the
financial market.
“What I am talking about has precedent. When Wema Bank had a similar
problem, the government, through AMCON moved in by pumping the needed
lifeline into the bank and resuscitated it. The bank came back to life;
the same happened to Unity Bank. That unity bank continues in business
today was as a result of such quiet intervention.
“The authorities did not have to over dramatize the challenges of these
banks by wielding the big hammer through the sacking of the board and
management. The CBN action would create the impression in the minds of the
banking public that all is not well, not just with Skye Bank but many
other money deposit banks and this can lead to a run on depositor’s funds
thereby compounding the woes of the Banking sector.
Another top official of a commercial bank with head office in Marina
wonder why Skye bank was singled out. His submission: “the fact of the
matter today is that since the Federal Government pulled out about N3
trillion from money deposit banks with the introduction of Single Treasury
Account, TSA, and the delay in the payment of over N11 trillion owed local
contractors by the government, there is hardly any bank in the country
today that is not grappling with liquidity challenges and capital
inadequacy issues. The situation of some are as acute, if not more acute
than that of Skye Bank. So the question is why single out one bank, is
Skye Bank the only bank that has made a consistent presence at the CBN
window? Certainly not.
“Even when you talk about insider related loans, are the Skye Bank
shareholders/directors the only culprits? The fear that has gripped the
banks since CBN wielded the big stick is profound. Who is next is the big
question. This certainly is not good for the health of the industry.
A former top official of AMCON who spoke to us last night wondered why the
CBN was in a hurry to apply the maximum measure. He said: “I am aware that
through a letter to Skye Bank, the CBN gave the directors up to December
31st 2016 to recapitalize the bank and made their obligations. The
directors were in tune with the CBN in respect of this deadline. Why then
the haste to descend on the bank six months ahead of the deadline. Six
months would have offered the directors the time frame within which to
recapitalize and meet their various obligations. If they did not, then you
may be justified with any action you would have taken subsequently.”
Last Monday the Governor of Central Bank of Nigeria, Mr. Godwin Emefiele
announced the resignation of the chairman and managing director of Skye
Bank, Dr. Olatunde Ayeni and Mr. Timothy Oguntayo respectively and some
other directors of the Bank. The Apex bank went ahead to appoint a
chairman, managing director and board members in what the governor
describe as a proactive step to save the health of the bank from further
deterioration.
Since that announcement, panic has gripped the financial sector and the
banking public.