What Next for over 55,000 Chase Bank Customers?

Central Bank of Kenya(CBK) has reported that they have received five suitors who have expressed their willingness to buy collapsed Chase Bank.Chase Bank was put under receivership on 7th April 2016 By Central Bank of Kenya following a ran that drained Ksh 8 billion from the bank in one day after reports emerged that the bank had loaned Sh16.6 billion irregularly and the external auditor expressed inability to establish the state of the institution’s finances.This came after the Chairman and the group managing director resigned from their positions.

Dr Njoroge also reported that assets could be identified and sold while there was also willingness by the shareholders and directors to move quickly and resolve the outstanding matters including completion of registration of collateral documents for the prevuously unsecured loans.

Chase Bank which was licenced by Central Bank of Kenya on 1st of April 1991 had 39 branches which over 55,000 customers.The bank was a leading commercial bank lending to business owners operating small and medium sized enterprises.In 2015,the bank lent excess of Ksh 22 billion to small businesses out of a loan book of Ksh 103 billion.The bank is ranked 11th in terms of balance sheet size in the kenyan banking industry with assets valued at Ksh 143 billion.Its core capital stood at over Ksh 11 billion as at december 31,2015