Ecobank has resumed trading as an authorized foreign exchange dealer following the lifting of the suspension imposed by CBK on the bank.
Last month, the CBK issued a statement against the bank barring Ecobank from foreign exchange trading in Kenya between March 29 and April 4 as part of regulatory action citing unsafe trading practices.
CBK said that the tier-two lender failed to meet the rules that stipulate that a bank must match its foreign currency assets and liabilities and ensure that the difference between the two does not exceed 10 per cent of core capital.
“In investigating Ecobank’s trading practices and a specific transaction that it had concluded, it is evident that Ecobank did not have sufficiently robust risk controls to prevent breaches on its foreign exchange exposure limits, or the inaccurate reporting of its position.” CBK in its Press release.
The bank was however allowed to settle all committed transactions that were on its books as of Monday and was also required to put in place measures to prevent the recurrence of the lapses that led to the breach.
“We take this opportunity to thank you for your understanding, patience, and support during the suspension period and we look forward to providing you with excellent service and customer experience through all our touchpoints. We would like to assure you that we will continue to review and enhance our controls and process- es to ensure full compliance with regulatory requirements as well as international best practices.” Ecobank in its press release.
