Kenya’s Central Bank and the Kenya Deposit Insurance Corporation on Wednesday reached understandings with Kenya’s Largest Bank by assets, KCB Bank Ltd on modalities to reopen Chase Bank which was placed under receivership two weeks ago.
KCB will takeover the bank and conduct a detailed due diligence before assuming a majority stake in the bank. The Central Bank says it chose KCB over other Nine bidders as it considered KCB’s credentials in terms of its solid brand, human capital and wide experience in the country. The Bank also added that KCB offered the best and the quickest way possible to to enabling of Chase Bank reopening.
The CBK noted that Chase Bank branches will open in a week’s time( April 27, 2016) with the online and mobile banking services also becoming available.
“Chase Bank customers will have immediate access to their deposits up to a maximum of Ksh.1 million. On this basis, 167,290 accounts (equivalent to 97 percent of accounts or 6 percent of total deposits) will have their funds available in full. Any new deposits will thereafter be immediately available. Deposits in excess of Ksh.1 million will be made available in a structured manner, details of which will be released in the near future. The moratorium on payments to creditors and lenders remains in place. However, the Manager will correspond with them in the near future with details of how these would be dealt with.” Said the Central Bank in a statement.
“Deposits in excess of Ksh.1 million will be made available in a structured manner, details of which will be released in the near future. The moratorium on payments to creditors and lenders remains in place. However, the Manager will correspond with them in the near future with details of how these would be dealt with. Ongoing efforts to collateralize existing loans and recover funds that were obtained irregularly or are non-performing will be stepped up. Existing borrowers are required to continue servicing their facilities. CBK and KCB will ensure that Chase Bank Ltd (In Receivership) will have adequate liquidity for its operations. KCB will make available a management team that will assist in the receivership.” Central Bank of Kenya
Source; Central Bank of Kenya
