Central Bank of Kenya on Tuesday appointed Kenya Deposit Insurance Corporation to assume management and control of Imperial Bank.
The regulator said the action was prompted by unsafe business conditions of the bank and that the appointment of KDIC has been carried out in the interest of its depositors, creditors and members of the public. “CBK has October 13 appointed the KDIC to assume management and control of Imperial Bank for a period of 12 months,” reads a statement from CBK.
Section 34 (1) of the Banking Act empowers the Central Bank to intervene pursuant to section 34(2) of the Banking Act in the management of an institution if it discovers or becomes aware of any fact or circumstance which, in the opinion of the Central Bank, warrants the exercise of the relevant power in the interests of the institution or its depositors or other creditors. This is the second bank the regulator under the watch of new governor, Patrick Njoroge is placing under scrutiny.
On August 24, Central Bank of Kenya ordered liquidation of Dubai Bank Kenya following cash flow problems. The matter is currently in court.
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