Skye Bank CEO, Top Management Resign to Avoid CBN Hammer

Mr. Timothy Oguntayo, group managing director/CEO of Skye Bank Plc and top management staff of the bank have allegedly resigned enmasse to avoid sack by the Central Bank of Nigeria [CBN] over the alleged liquidity crisis in the bank.

Nigeria CommunicationsWeek could not independently confirm the report but Sahara Reporters said the mass resignation was to pre-empt a decision by the CBN to sack the Board and Management of commercial banks showing signs of distress in the country.

Sahara Reporters reported that for instance, on January 22, 2O16, the CBN sent a letter [Ref: BSD/BCS/CON/SK/O1/O32] entitled “RE: Insider Credits” to the Group MD/CEO of Skye Bank in which the bank was granted an extension till December 31, 2O16 to resolve its insider credits and related liquidity issues.

The CBN letter, which was signed by Benjamin A. Fakunle for director of Banking Supervision, read in part:

“We refer to your letter dated December 1O, 2O15 and our exchange of correspondence on the above subject [Insider Credits] and write to inform you that the Central Bank of Nigeria has granted an extension of time till December 31, 2O16 to enable you bring your insider related credits within the stipulated regulatory maximum of 1O% of your paid-up capital per director, including his/her related parties and 6O% paid-up capital for total related credits in line with our circular BSD/9/2OO4 on Large Exposures and Connected Lending.”