The Central Bank of Kenya (CBK) wants a speedy conclusion to the planned acquisition of Spire Bank, by Equity Group.
The lender also wants the transaction to among others protect the interest of depositors and creditors as well as ensure stability in the banking industry.
CBK Governor Dr. Patrick Njoroge said Spire Bank loss making streak has resulted to breach of the statutory core capital requirements.
As at January this year, Spire Bank’s core capital stood at negative Ksh 2.6 billion which is against a central bank threshold at of at least Ksh 1 billion.
The bank is also in breach of more statutory requirements.
Appearing before the National Assembly Committee on Finance and National Planning, CBK Governor Dr. Njoroge, called for a speedy completion of the planned acquisition of Spire Bank by Equity Bank to safeguard interest of depositors and creditors.
Equity Bank intended to inherit over 20,000 depositors and 3,700 borrowers of Spire Bank by last month but the process has been marred by legal issues.
Dr. Njoroge believes the deal is a viable option to stem further losses
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