Chase bank attracts International 'sponsor' to bail It out from Its financial woes

Troubled Kenyan bank may soon be out of the woods and get itself a wealthy international suitor to bail it out from its financial woes.

Several international banks have shown interest in having a stake at Kenya’s once fastest growing bank, Chase Bank and have already submitted their papers.

According to a statement from Central Bank Kenya released early this week, three local banks, four foreign financial institutions and five other financial institutions and consortia have all expressed interest in bailing out Chasebank.

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Qatari National Bank (QNB) has been advertising its financial results in local dailies for the third year in a row for instance while New York-based lender JPMorgan Chase has also expressed interest in setting up a representative office in Nairobi.

The international banks hope to use chase bank as a route to position their brands in the region.

Locally Kenya’s biggest bank by assets, KCB, is among the strongest contenders eyeing to have a piece of Chase bank but up to now it is not clear whether it has made the final cut.

The bank last year had even contracted by the receiver managers, the Kenya Deposit Insurance Corporation (KDIC) to try and seal the deal.

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The CBK is seeking to sell Chase as part of a restructuring plan meant to speed up its recovery.

“The evaluation of the EOIs has now been completed and a shortlist of qualifying investors has been identified,” the regulator said in the update to interested parties, including depositors whose money is still stuck with the bank.

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Chase bank was placed under receivership in April last year following revelation that it was facing a serious liquidity problem following its directors stealing large sums of money through unsecured insider lending.

The shortlisted investors must submit their formal proposals by June 9.