Kenya’s Chase Bank removed from receivership

Chase bankFrom MARIA MACHARIA in Nairobi , Kenya
NAIROBI, (CAJ News) – CHASE Bank has received Central Bank of Kenya’s (CBK) approval to start taking fixed deposits and resume lending.

The move marks a major milestone in the turnaround efforts of the bank signaling that most of the major issues under resolution have been addressed, paving the way for full resumption of banking services to all customers.

Kenya Depositors’ Insurance Corporation (KDIC) placed the bank under receivership by in April, with KCB Bank Kenya Limited appointed as the Receiver Manager.

In an unprecedented turnaround, the bank reopened its doors barely a month after it was taken over, and near normal operations have since resumed.

While lauding Chase Bank’s revival as a landmark case study for Kenya’s financial services sector, KDIC’s Acting Chief Executive Officer, Mohamud Ahmed, said they would continue to work closely with CBK and the banking industry to mitigate possible failures.

“In the unlikely event of another failure, KDIC will resolve it promptly for the benefit of depositors, creditors and the general public. We are closely monitoring Chase Bank with a view to resuming full services and wish to thank the depositors for their continued support,” said Ahmed.

Since April, Chase Bank has recorded improved inflows in excess of Ksh. 10 billion (US$98,5 million) while thousands of new customers have also come on board since the Bank reopened its doors.

CAJ News

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Posted by on Aug 17 2016. Filed under Africa & World, Featured, Finance, Finance & Banking, National, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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