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Chase Bank to reopen all branches next week

The collapsed Chase Bank will reopen all its branches next week after Kenya Commercial Bank (KCB) acquired a majority stake in it.

Central Bank of Kenya Governor Dr Patrick Njoroge announced that all branches will reopen on Wednesday, 27th April 2016.

Customers with less than Sh1 million deposited in the bank will access their full cash immediately the bank reopens.

Customers with over Sh1 million will however access their funds gradually.

KCB will over the next two days conduct due diligence on the structure of the bank before injecting capital into the bank.

“Any new deposits will, thereafter, be immediately available with deposits in excess of Sh1 million being made available in a structured manner, details of which will be released in the near future,” read the governor’s statement.

KCB won the bid to procure a majority stake in the collapsed bank after beating nine other international and local suitors who had expressed interest.

“The parameters we were looking for in the proposals include speedy resolution, one that supports credibility, includes brand recognition, liquidity as well as sound management,” said Dr Njoroge at a press briefing on Wednesday.

Chase Bank Limited went into receivership two weeks ago after it experienced liquidity difficulties and consequently was not able to meet its financial obligations after panic withdrawals following alleged mismanagement reports emerged in the public domain.

Chase Bank was the third bank to be placed under receivership under Dr Njoroge’s tenure.

 

“KCB’s credentials as a strong bank with a solid brand, adequate human resources and wide experience in the country, will facilitate safeguarding the interests of CBL’s depositors and creditors, and the wider public interest. CBK will continue to monitor closely developments in CBL, Accordingly,” said Dr Njoroge.