Skye Bank CEO resigns ahead of CBN’s sack of top management

Timothy Oguntayo, chief executive officer (CEO) of Skye Bank, has resigned from the bank, following the decision of the Central Bank of Nigeria (CBN) to fire the top management of the bank and dissolve existing boards.

Oguntayo resigned on Monday, in anticipation of CBN’s decision.

A senior official at the apex bank told TheCable on Monday that the sack was already in effect, adding that it was due to the capital issues casting doubts over the future of the bank.

In June, Standard and Poor’s downgraded Skye Bank’s rating to “CCC+” from “B-“, based on liquidity issues and capital adequacy.

“We anticipate deterioration in Skye Bank’s asset quality metrics and profitability, which we think will markedly diminish the bank’s capital adequacy relative to the regulatory minimum and heighten refinancing risks,” the rating agency said.

“Consequently, we are lowering our global scale ratings on Skye Bank to ‘CCC+’ from ‘B-‘ and our national scale rating to ‘ngB+’ from ‘ngBB’ and placing them on CreditWatch with negative implications. The CreditWatch reflects our concerns over Skye Bank’s compliance with regulatory capital adequacy minimum and the confidence sensitivity of its funding base.”

CBN is expected name a new management over the course of the week.