The Central Bank of Nigeria, CBN, has dissolved the management board of Skye Bank PLC citing the bank’s inability to meet the deadline of June 30, 2016, giving to the bank to recapitalise.

Chairman and Chief Executive Officer of the bank also resigned, while four non-executive directors were retained and will be replaced by Muhammad Ahmad, a former Central Bank official, a former head of the Pension Commission and former Chairman of First Bank Nigeria.

Also, Tokunbo Abiru, a former executive director at First Bank Nigeria takes over as the new CEO.

The financial regulator, however says that Skye Bank is not distressed but has fallen below the regulated capital adequacy ratio.

Last year, the central bank gave three commercial banks until June 2016 to recapitalise after they failed to hit a minimum capital adequacy rate of 10 percent.

On Monday, Skye Bank shares fell 9.52 percent to 95 kobo as investors sold almost 11 million shares of the lender whose 2015 financial statements are yet to be released to the market.