NIC bank appointed to compensate Imperial bank depositors

By Grace Maina

The Central Bank of Kenya (CBK) has Tuesday appointed the NIC Bank to act as the asset and liability consultant for Imperial Bank of Kenya (IBL).

As part of the CBK and the Kenya Deposit Insurance Corporation (KDIC) continued commitment to protect the interests of IBL depositors, stakeholders and the wider public stated that NIC Bank will also advice KDIC in regards to the servicing of loans, staffing and other assets of Imperial Bank Limited in Receivership (IBLIR).

As the asset and liability consultant, NIC Bank will analyze IBLIR’s asset and liabilities portfolio to enable the KDIC to determine the options available.

This will entail an assessment of the portfolio together with a review of the underlying documentation in order to identify the quality of the assets and liabilities and any risk attendant there to.

As part of this appointment, NIC Bank will disburse, on behalf of KDIC, payment to the depositors of IBL on terms and conditions to be mutually agreed.

It is the intention of KDIC to make an additional tranche of Ksh9 billion available to depositors for disbursement to commence in early July 2016 and further information will be communicated. This is on the back of an initial disbursement of Ksh7 billion made available through Diamond Trust Bank Limited (DTB) and KCB Bank Kenya Limited (KCB).

Subject to a due diligence and contract, the KDIC and NIC Bank will enter into negotiations leading to the disposal by the KDIC and the assumption by NIC Bank of certain assets and liabilities, as well as the majority of the staff and branches of IBL.

CBK believe that the conclusion of this process, together with previous disbursements, will achieve a cumulative pay-out ratio of approximately 59% to the depositors in the structured fashion. Other efforts will continue to pursue recoveries of IBL to the further benefit of depositors and other stakeholders.

“This is the most efficient manner to accelerate the process of IBL receivership to the benefit of its staff, depositors and other stakeholders,” says CBK.

NIC Bank solid brand, sound governance and experienced management team will complement the ongoing efforts by CBK and the KDIC to safeguard the interests of IBL staff, depositors and other stakeholders.

In its regulatory capacity, CBK will continue to closely monitor the developments in IBL in conjunction with the KDIC.




Latest posts

Kenchic goes for easy-to-cook chicken products

Ronald Owili

Egypt’s budget deficit drops to 6.1pc of GDP in 2021/22 fiscal year

Ronald Owili

RBA outgoing chief executive Nzomo Mutuku dies

Ronald Owili

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More