KCB Bank Kenya Ltd has completed its assignment as the Kenya Deposit Insurance Corporation (KDIC) appointed receiver manager in Chase Bank Ltd (In Receivership) (CBLR), marking the first ever full resolution of a local bank in receivership.
This follows the Central Bank of Kenya’s (CBK) approval of the transfer of selected assets and liabilities of CBLR to SBM Bank Kenya Limited through the Gazette Notice No. 6833 on July 6, 2018.
Effectively, KCB will exit CBLR at the end of this month.
KCB Group CEO and MD Joshua Oigara said the latest breakthrough is an endorsement of the Kenyan banking sector’s ability to effectively deploy globally benchmarked solutions to solve local market challenges.
“The resolution is the first of its kind in this market and we are proud to have played a role in this process. This assignment gave us an opportunity to spearhead and guarantee the stability of the banking sector,” he said while thanking the CBK and the KDIC for the opportunity for Kenya’s biggest lender by assets to lead the transition.
Related: OIGARA: WHY KCB DIDN’T BUY CHASE BACK
The handover marks a significant milestone in the prudent management and successful resolution of a local bank in receivership, following the receipt and acceptance of a binding offer for CBLR by the regulators.
CBLR under the management of KCB Bank Kenya successfully resumed operations on the 27th April 2016, one month after the CBK placed the bank under receivership.
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This was followed by the successful facilitation of depositors’ access of up to Ksh 1 million of their funds enabling more than 97 per cent of the customers to receive their funds in full. All the operations of the Bank have been running successfully with entire branch network of 62 in full operation supported by a staff establishment of over 700.
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