We Now Know Who Contributed To Skye Bank's Collapse
Skye Bank is now history, but the tales of its demise lingers.
On Monday, Nigeria’s deposit insurer, the Nigeria Deposit Insurance Corporation, NDIC blamed the bank’s collapse on the choices of the bank’s former management.
NDIC said it was monitoring investigations of law enforcement agencies into Skye Bank with the central bank to determine the culpability of the management in the bank's failure.
Recall that in October, the government said it will prosecute those responsible for the collapse of Skye Bank in an attempt to set an example that the state will no longer bail out banks while the culprits go unpunished.
The CBN spent $4 billion on bailing out nine lenders nine years ago to save the Nigerian banking system from collapse.
“The corporation’s risk assessment and forensic investigation reports revealed that the erstwhile management of the failed Skye Bank contributed to its failure,” the NDIC said in a statement.
Skye’s problems started after it used short-term funds to buy Mainstreet Bank in 2014 but failed to raise fresh cash. It had been in talks with shareholders and investors to raise capital but suspended plans after weak oil prices hit the capital markets and drove foreign investors away.
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