We Want Polaris Bank Sold In Two Years, AMCON Tells Management

The Asset Management Corporation of Nigeria, AMCON, has indicated that it would like Polaris Bank, the new bank established to take over the defunct Skye Bank to be sold within two years.

Ahmed Kuru, Chief Executive Officer of AMCON, disclosed this in an interview with Bloomberg, a US-based financial magazine, in Lagos recently.

According to Kuru, the bank management has been informed of AMCON’s decision at a meeting, adding that the corporation had set a deadline to wind down the bank’s operations by 2023.

He said it was pertinent for AMCON to intervene and possess the assets and liabilities of the former Skye Bank becuase its imminent collapse would have a multiplier negative effect on other commercial banks, customers, and the financial system as a whole.

“It is a very big bank and if you allow anything to happen to it, it will affect some other financial institutions. AMCON has no plans to establish another rescue package for the country’s banks.

“The agency will advertise for financial advisers for the sale of Polaris Bank after an investigation into the cause of its capital and liquidity challenges. We will prosecute individuals suspected to have contributed to the bank’s collapse with a view to recovering any bad loans linked to them”, Kuru said.

The Central Bank of Nigeria had last month cancelled the licence of Skye Bank for failing to meet capital and liquidity requirements and asked AMCON to capitalise Polaris Bank with N786bn ($2.2bn).

You should also read

Sign up for our Newsletter

Enter your email and stay on top of things,

Subscribe!