‘Healthy’ Skye Bank gets CBN loan to ‘operate efficiently’

Skye Bank, Nigeria’s eighth biggest lender, has got a Central Bank of Nigeria (CBN) loan facility to stay liquid in the midst of current challenges.

A source at the CBN confirmed the development to TheCable by phone on Thursday, saying this does not by any means cast doubt on the ability of the bank to stay afloat.

He said the bank remains “healthy” and only took the loan to “operate efficiently” under the new management approved by the apex bank on July 4.

The loan is aimed at boosting the bank’s liquidity at a time when many Nigerians are voting their monies out of the bank, due to speculations on its viability in the days to come.

TheCable cannot independtly confirm at this time, how much loan facility was taken by the bank.

The CBN had initially said the bank, which had its top management replaced on July 4, like every other Nigerian bank is not in distress.

“For the avoidance of doubt, the infusion of a new Board and Management for Skye Bank PLC is a proactive regulatory action meant to ensure that the bank does not continue to fail in its relevant prudential ratios. Neither Skye Bank nor any other bank in the industry is in distress,” CBN said earlier in the month.

“Therefore, the CBN would like to request the general public to ignore speculations or rumours to the contrary as they could only be the handiwork of mischief makers who do not mean well for the Nigerian banking system and its economy.

The apex bank’s statement, which was corroborated by a Fitch rating of Nigerian banks, was not enough to stop Nigerians from panic withdrawal of funds from banks perceived to be weak.