Kenya’s central bank sees resolution of Chase Bank receivership in early 2017

People walk past a Chase Bank branch, now managed by Kenya Commercial Bank (KCB), after its reopening in downtown Nairobi, Kenya April 27, 2016. REUTERS/Thomas Mukoya
Social sharing

By George Obulutsa

NAIROBI (Reuters) – Kenya’s central bank hopes mid-size lender Chase Bank will be brought back out of receivership sometime during the first quarter of 2017, the governor said on Tuesday.

The Central Bank took over Chase Bank in April after a run on its deposits raised fears it would be unable to repay customers.

Chase was the third medium-to-small lender to be closed in Kenya over a period of nine months, rattling investors in East Africa’s biggest economy, where the level of gross non-performing loans reported by banks rose sharply last year.

“Our expectation is sometime in Q1 of next year, we will bring this to fruition,” Patrick Njoroge told a news conference.

In April, Njoroge said that he had received nine indications of interest in Chase Bank, including from the private bank’s own shareholders and other local lenders or investors, as well as two foreign parties. [nL5N17N1K7]

In the same month, Chase Bank reopened after KCB Group was appointed to manage it.

On Tuesday, Njoroge said there was interest from both foreign and local investors but did not elaborate apart from saying that they were looking at all possible ways of bringing Chase Bank out of receivership.

“Everything is on the table, so there is nothing that you can say is off the table, including even, just as an example, we haven’t said the way to go forward would not include some equity conversions of deposits or equity conversions of loans.”

Kenya’s mid-sized Imperial Bank was taken over in October 2015 after fraud was uncovered. Two months earlier, smaller lender Dubai Bank was put into receivership.

READ ALSO  Shocking: Housewife Pours Hot Water On Co-wife & Daughter After Altercation.

(Writing by Aaron Maasho; Editing by Mark Heinrich)

 

Leave your comment on this post
About 9News Nigeria 11282 Articles
9News Nigeria is Nigeria's favourite news source. For Authentic, Unbiased News on Politics, Business, Sports, Technology, Entertainment and Lifestyles, Health, Nollywood, Crime and Investigations, Family and Relationships, Inspirations .. and much more. For Latest News from Africa and around the world, 9News Nigeria is your best source. WhatsApp +2348115805632 Email: info@9newsng.com Facebook: www.facebook.com/9NewsNG | Twitter/Instagram: @9newsng

Be the first to comment

Leave your comment