Chase bank receivership extended by 6 months

Chase Bank

In a press statement, the central bank revealed that the formal process of picking a new investor would take six months.

“KDIC was appointed on April 7, 2016, to assume the management and control of 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.

"The appointment of KDIC was carried out in the interest of the bank’s depositors, creditors, and members of the public. Since the appointment, progress has been made towards a resolution of the bank’s receivership, with the objective of safeguarding the interest of depositors, creditors, and the wider public interest,” part of the statement read.

KDIC will be expected to maintain control of chased bank until a new investor is picked.

“In light of the above, KDIC will maintain the management, control and conduct of the affairs and business of the institution, exercise all the powers of the institution to the exclusion of its Board of Directors, and work with CBK on an appropriate resolution strategy,” the statement adds.

Chase Bank was placed under receivership on April 7, 2016, after the emergence of questionable lending practices.

Customers of the bank can currently access only Sh1 million of their funds but can continue making deposits.

Recently, CBK governor Patrick Njoroge said that the bank had continued to grow and make deposits since it was placed under receivership.

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