Financial industry watchers have continued to ponder over the sudden<\/p>\n
resignation of the key Board members of Skye Bank and the appointment of<\/p>\n
new ones by the Central Bank of Nigeria and the verdicts of top level<\/p>\n
bankers is that the development portends a dangerous and disturbing signal<\/p>\n
for the financial industry.<\/p>\n
<\/p>\n
A senior management staff of one of the first generation money deposit<\/p>\n
banks who expressed worries in an interview with our correspondent said:<\/p>\n
\u2018I think Central Bank\u2019s move is not the best in the circumstance. Let\u2019s<\/p>\n
assume that truly Syke Bank has liquidity issue and is beset with capital<\/p>\n
inadequacy challenges, what would it have caused the CBN to provide the<\/p>\n
necessary life line while the investors\/shareholders put their house in<\/p>\n
order. If the CBN had taken this measure, the bank would have been able to<\/p>\n
swim out of this turbulence and this would have ensured stability in the<\/p>\n
financial market.<\/p>\n
<\/p>\n
\u201cWhat I am talking about has precedent. When Wema Bank had a similar<\/p>\n
problem, the government, through AMCON moved in by pumping the needed<\/p>\n
lifeline into the bank and resuscitated it. The bank came back to life;<\/p>\n
the same happened to Unity Bank. That unity bank continues in business<\/p>\n
today was as a result of such quiet intervention.<\/p>\n
<\/p>\n
\u201cThe authorities did not have to over dramatize the challenges of these<\/p>\n
banks by wielding the big hammer through the sacking of the board and<\/p>\n
management. The CBN action would create the impression in the minds of the<\/p>\n
banking public that all is not well, not just with Skye Bank but many<\/p>\n
other money deposit banks and this can lead to a run on depositor\u2019s funds<\/p>\n
thereby compounding the woes of the Banking sector.<\/p>\n
<\/p>\n
Another top official of a commercial bank with head office in Marina<\/p>\n
wonder why Skye bank was singled out. His submission: \u201cthe fact of the<\/p>\n
matter today is that since the Federal Government pulled out about N3<\/p>\n
trillion from money deposit banks with the introduction of Single Treasury<\/p>\n
Account, TSA, and the delay in the payment of over N11 trillion owed local<\/p>\n
contractors by the government, there is hardly any bank in the country<\/p>\n
today that is not grappling with liquidity challenges and capital<\/p>\n
inadequacy issues. The situation of some are as acute, if not more acute<\/p>\n
than that of Skye Bank. So the question is why single out one bank, is<\/p>\n
Skye Bank the only bank that has made a consistent presence at the CBN<\/p>\n
window? Certainly not.<\/p>\n
<\/p>\n
\u201cEven when you talk about insider related loans, are the Skye Bank<\/p>\n
shareholders\/directors the only culprits? The fear that has gripped the<\/p>\n
banks since CBN wielded the big stick is profound. Who is next is the big<\/p>\n
question. This certainly is not good for the health of the industry.<\/p>\n
<\/p>\n
A former top official of AMCON who spoke to us last night wondered why the<\/p>\n
CBN was in a hurry to apply the maximum measure. He said: \u201cI am aware that<\/p>\n
through a letter to Skye Bank, the CBN gave the directors up to December<\/p>\n
31st 2016 to recapitalize the bank and made their obligations. The<\/p>\n
directors were in tune with the CBN in respect of this deadline. Why then<\/p>\n
the haste to descend on the bank six months ahead of the deadline. Six<\/p>\n
months would have offered the directors the time frame within which to<\/p>\n
recapitalize and meet their various obligations. If they did not, then you<\/p>\n
may be justified with any action you would have taken subsequently.\u201d<\/p>\n
<\/p>\n
Last Monday the Governor of Central Bank of Nigeria, Mr. Godwin Emefiele<\/p>\n
announced the resignation of the chairman and managing director of Skye<\/p>\n
Bank, Dr. Olatunde Ayeni and Mr. Timothy Oguntayo respectively and some<\/p>\n
other directors of the Bank. The Apex bank went ahead to appoint a<\/p>\n
chairman, managing director and board members in what the governor<\/p>\n
describe as a proactive step to save the health of the bank from further<\/p>\n
deterioration.<\/p>\n
<\/p>\n
Since that announcement, panic has gripped the financial sector and the<\/p>\n
banking public.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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