Fitch Ratings indicated that Central Bank of Nigeria's (CBN) decision to address the problems at the failed Skye Bank does not imply that Nigerian banks can always rely on state support, considering the sovereign's credit weakness. It noted that Skye Bank's liquidity was weak, that the bank required permanent liquidity support from the CBN, and that its shareholders failed to provide additional capital. Accordingly, the CBN announced that it had revoked Skye Bank's license, and that the bank's assets and liabilities, as well as most of its employees' contracts, were transferred to Polaris Bank, the new bridge bank that was created for this purpose. However, it indicated that the authorities were slow to solve Skye Bank's difficulties and that the bank's problems, partly arising from weak governance, were not recent. It pointed out that the Asset Management Corporation of Nigeria, a state-owned entity established to acquire and eventually sell underperforming banks and selected bank assets, would initially provide NGN786bn, or $2.6bn, to recapitalize Polaris Bank. It added that the Nigeria Deposit Insurance Corporation would operate Polaris Bank and guarantee all of its deposits, which would help preserve depositor confidence and improve the credit profile of the Nigerian banking sector. Fitch assigned a 'No Floor' rating for Nigerian banks on their support rating floors, which means that the banks' ratings do not incorporate any sovereign support and that authorities did not officially convey their willingness to support the banking sector. 
Source: Fitch Ratings