The Central Bank of Kenya (CBK) has given its approval for the liquidation of Chase Bank. Its decision was made public on the 16th of April 2021 and is coming 5 years after the commercial bank went into receivership.
The decision by the Central Bank of Kenya (CBK) is coming after a recommendation was made by the Receiver-Manager, the Kenya Deposit Insurance Corporation (KDIC). The recommendation stated that the lender should be liquidated.
A statement which was released by the Central Bank of Kenya (CBK) revealed that the Kenya Deposit Insurance Corporation (KDIC) made it known that, “considering the weak status of financial position, liquidation is the only feasible option.”
The Central Bank of Kenya (CBK) subsequently agreed to to the recommendation which was provided as it was in line with the laws of Kenya which protect the interests of the creditors of Chase Bank, its depositors, as well as the wider public interest.
On the 7th of April 2016 Chase Bank was put under receivership as a result of the financial difficulties that it encountered which left its numerous creditors, as well as depositors at a loss.
The Central Bank of Kenya (CBK) appointed the Kenya Deposit Insurance Corporation (KDIC) as the receiver for Chase Bank so as to protect the interest of the lender’s creditors, its depositors and the members of the public.
On the 20th of April 2016 the Kenya Deposit Insurance Corporation (KDIC) then appointed KCB Bank Kenya Limited as the Manager of Chase Bank Limited (In-Receivership).
The appointment then made it possible for 97 percent of the depositors at Chase Bank who had less than 1 million Kenyan Shillings in their accounts, to be able to access their funds in full.
In August of 2018, 75 percent of the value of the deposits and 75 percent of the value of assets at Chase Bank were moved to SBM Bank Kenya Limited after a transparent Expression of Interest process.
The Kenya Deposit Insurance Corporation (KDIC) continued to oversee the remaining 25 percent of the value of deposits as well as other liabilities and assets which were left at Chase Bank Limited (in receivership).
On the 7th of April 2021 the Kenya Deposit Insurance Corporation (KDIC) proceeded to submit a Receiver’s report to the Central Bank of Kenya, and proposed that Chase Bank should be liquidated.
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