Panic with­drawal: CBN boosts Skye Bank’s liq­uid­ity

Daily Trust - - BUSINESS - From Sun­day Michael Ogwu, La­gos with agency re­port

The Cen­tral Bank of Nige­ria (CBN) has pro­vided a loan to Skye Bank Plc to boost its liq­uid­ity af­ter panic with­drawal by cus­tomers from the lender forc­ing a liq­uid­ity short­age.

The CBN early this month changed the man­age­ment of the bank due to the in­sider loan scandal, the process which trig­gered mas­sive with­drawals by cus­tomers.

The short-term lend­ing fa­cil­ity will al­low new man­age­ment to “en­sure that some with­drawals it suf­fered do not ad­versely af­fect its op­er­a­tions,’’ Isaac Oko­rafor, a spokesman for the CBN, said in an e-mailed re­sponse to ques­tions by Bloomberg

It would be re­called that the CBN re­placed top man­agers of Skye Bank ear­lier this month af­ter it was said to have breached re­quired thresh­olds for liq­uid­ity and non-per­form­ing loans.

While the reg­u­la­tor moved to calm mar­kets, say­ing Skye Bank and the in­dus­try re­mained healthy, the stock plunged to record lows, lead­ing de­clines among other Nige­rian lenders.

When Daily Trust sort to know the amount ad­vanced to Skye Bank, the Apex Bank spokesman de­cline to dis­closed the amount stress­ing that it would be out of place to do so.

“I can­not open the pages of a com­mer­cial bank on the pages of the news­pa­per. But I can con­firm to you that based on the oc­cur­rences of the last two week which have seen peo­ple re­mov­ing their funds from the bank, the apex bank de­cided to pro­vide a short term life line to en­able the bank sta­bi­lize” he said.

The af­fir­ma­tion of the CBN that it has no plan to sell Skye Bank saw the shares of the bank rose for the fourth straight day, gain­ing 9 per­cent to 85 kobo

Mean­while, the naira yes­ter­day ap­pre­ci­ated to 374/dol­lar af­ter fall­ing to record low of 378/dol­lar on Wed­nes­day at the parar­rel mar­ket. Traders in Abuja said the re­verse was due to the slow de­mand for forex in the mar­ket.

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