The Nigerian Deposit Insurance Corporation (NDIC) was able to resolve the failure of the defunct Skye Bank plc after using bridge bank option, the Managing Director of the corporation, Alhaji Umaru Ibrahim, has said.
Speaking during the NNDC’s Special Day at the ongoing 39th Kano International Trade Fair yesterday, Ibrahim said bridge option was a temporary bank created by deposit insurer to operate a failed bank until it is stabilised and sold to an interested buyer.
Represented by NDIC’s Comptroller of Kano Zonal Office, Alhaji Bashir Nuhu, Ibrahim said following the NDIC’s intervention, Polaris, a bank that acquired Skye is currently operating in the 277 branches of the defunct Skye premises.
He also said the intervention had also saved over 6,000 jobs from the failed bank.
The MD added that as at June 2018, depositors in the defunct Skye Bank have had unhindered access to their deposits in excess of N949.60 billion.
He stated that all those that contributed to the failure of the failed Skye bank are being investigated by relevant government agencies and would be prosecuted to serve as deterrent to others.
He pointed out that NDIC and CBN collaboration would help in minimizing the occurrence of unlawful dealings, weak internal control and overall non-compliance to prudential guidelines.