The Central Bank of Kenya has placed Imperial Bank under receivership for one year for what the banking regulator termed as ‘unsafe banking’ conditions.
CBK has consequently appointed the Kenya Deposit Insurance Corporation to assume the management, control and conduct of the affairs and business of the institution. The KDIC will exercise all the powers of the institution to the exclusion of its board of directors and advise CBK of an appropriate resolution strategy as soon as is practicable and not later than twelve months from date of appointment,” the regulator said in a notice.
Imperial Bank is ranked as a mid-tier bank with operations in Kenya and Uganda. It recently raised Ksh2 billion debt through a corporate bond that was marginally oversubscribed.
The bank posted Ksh1 billion in half year profits up from Sh858 million in a similar period last year.
The lender becomes the second bank to be put under receivership since the new governor came into office hardly four months ago after Dubai Bank, which is now being liquidated.
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