Chase bank put under receivership by CBK

Chase bank put under receivership by CBK

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Former Central Bank of Kenya Governor Prof Njuguna Ndung’u shortly after unveiling a plaque to officially open the Chase Bank in Nakuru town on January 28, 2011. The bank has been put under receivership. PHOTO: COURTESY

Nairobi, KENYA: The Chase bank of Kenya has been put under receivership by the Central Bank of Kenya (CBK)due to what the regulator termed as unsafe financial conditions.

CBK  on Thursday said  it had taken the measures because  Chase Bank had experienced what they term as “liquidity difficulties.”

“Chase Bank Limited experienced liquidity difficulties following inaccurate social media reports and the stepping aside of two its directors. Consequently it was not able to meet its financial obligations on April 6, 2016.” Read part of the statement released by CBK.

Kenya deposit Insurance Corporation KDIC is expected to assume the management, control and conduct of the affairs and business of the institution; to the exclusion of its board of its directors and advise CBK of an appropriate resolution strategy as soon as it practicable and not later than twelve months, this is according to the statement.

“The Central Bank of Kenya has today Thursday appointed Kenya Deposit Insurance Corporation (KDIC) as the receiver manager for Chase Bank Limited for a period of twelve months, pursuant to the provisions of Sections  43 (1), 43(2) and (53)1 of the Kenya Deposit Insurance Act, 2012,” said CBK in a statement.

On Wednesday, Chase Bank chairman Mr Zafrullah Khan and group managing director Mr Duncan Kabui stepped aside following concerns over the credibility of the bank’s financial statements.

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Chase Bank joins the likes of  Imperial Bank , Dubai Bank and Charter house bank which were put under receivership in 2015 and 2006 respectively.