By Stanley Wabomba
Chase Bank has been placed under receivership for 12 months due to what the Central Bank of Kenya terms as unsafe financial conditions.
Central Bank governor Dr. Patrick Njoroge says the bank has experienced liquidity challenges. The decision by the Central Bank caught most customers unawares.
Indications that all was not well at Chase Bank were firmed up Wednesday when Zafrullah Khan and Duncan Kabui stepped down as the bank’s chairman and Group Managing Director respectively.
This was after Chase Bank re-published its 2015 full year financials showing that the bank received a qualified opinion from its external auditor. This in addition to social media posts about the bank sparked panic withdrawals.
This is despite the CBK assuring that there was no cause for alarm. The Central Bank says it took this action because Chase Bank had experienced liquidity difficulties, confirming the effect of panic withdrawals due to social media reports and the stepping aside of two its directors.
In Kisumu, customers went to the bank hoping to access their cash, but to their shock, the Chase Bank branch was not operating.
CBK says it took the decision after Chase Bank was not able to meet its financial obligations Wednesday.