Central Bank of Kenya (CBK) has placed Chase Bank under receivership.
According to CBK, Chase Bank will be under receivership for 12 months due to what the regulator termed as unsafe financial conditions.
“Chase Bank experienced liquidity difficulties following inaccurate social media reports and stepping aside of two directors, consequently it was not able to meet its financial obligations on April 6, 2016,” CBK said in a press statement on Thursday. CBK further noted that Chase Bank was unable to meet its financial obligations on Wednesday. “The bank experienced liquidity difficulties following inaccurate social media reports and the stepping aside of its two directors and was hence unable to meet its financial obligations on April 6, 2016,” CBK added in the statement.
The move to place Chase Bank under receivership comes a day after the bank restated its financial results showing it had under-reported insider loans by a whopping Sh8 billion.
The restated financials showed that insider loans — money advanced to directors, shareholders, associates and employees of the bank — stood at Sh13.62 billion last year against the Sh5.72 billion it reported.
CBK further appointed the Kenya Deposit Insurance Corporation (KDIC) to assume management, control and conduct of the affairs and business of Chase Bank.
Customers with deposits at Chase Bank can call 0770 887 992 for assistance.
