Senate House Comitte on Finance faults receivership of bank on CBK

Senate House Comitte on Finance faults receivership of bank on CBK

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The Senate Finance, Commerce and Budget Committee chairman Billow Kerrow. The Senate committee on finance wants CBK staff ivnvestigated over receivership of banks. PHOTO/FILE

Nairobi, KENYA: Senate house committee on finance wants Central Bank of Kenya to institute investigations on its staff on falling of Chase Bank, as it calls for relevant authorities to freeze assets of the top officials of the bank.

In a media briefing at parliamentary buildings in Nairobi ,finance committee led by its chair Billow Kerrow faulted CBK for putting the bank under receivership without considering the plight of its customers.

“The pressure they put to the bank led to the rumour which went around social media, there are better ways of dealing with those problems which are confined in the law without creating unnecessary panic.”Kerrow said.

The committee called on the CBK governor Dr Patrick Njoroge to institute investigations to ascertain if any CBK staff colluded with other chase bank officials to bring down the bank.

“The central bank must be held equally responsible as action is taken  towards those directors we must see action being taken among the central bank operatives.” Nyeri senator Mutahi Kagwe said.

Last week the Central Bank of Kenya (CBK) put Chase Bank, under statutory management for a year due to what the regulator termed as unsafe financial conditions.

READ ALSO: Chase Bank put under receivership by CBKChase Bank put under receivership by CBK

The regulator said that it had taken the drastic decision saying Chase Bank had experienced “liquidity difficulties.”

It 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.