Chase Bank Kenya placed under receivership

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April 8, 2016 by Author

Nairobi-Central-Business-DistrictKenya’s central bank on Thursday placed Chase Bank Kenya under receivership for 12 months to protect depositors, creditors and the public.

The central bank said Chase Bank had experienced liquidity difficulties following inaccurate social media reports and the departure of two directors, and was not able to “meet its financial obligations on April 6”.

The privately owned lender said on Wednesday that chairman Zafrullah Khan and group MD Duncan Kabui had left the bank. It declined to give reasons for the departures, adding to anxiety over the sector.

Kenyan media reported that the resignations followed concern about the credibility of the bank’s financial statements.

On Wednesday it reissued results published last week, in which it restated its liabilities and loans to employees and directors.

Chase Bank posted a 686.4 million-shilling ($6.8m) loss in the 12 months through December from a profit of 2.36-billion shillings a year earlier, Bloomberg reported.

The bank’s restated results on Wednesday showed loans to employees and directors in 2015 amounted to 13.6-billion shillings. On March 31, it had reported that figure as 3.24-billion shillings.

 

 

 

 

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