Clients with more than one million shillings at Chase Bank Kenya will be able to access their cash after 90 days upon the bank’s opening on 27th of April 2016. This is according to Kenya Commercial Bank who has offered to bail out Chase Bank as well as owning the majority stake.
In a social media interaction with curious customers at Chase Bank and who wanted to know more about what KCB was planning to do, the bank assured them that all the tradition of Chase Bank will be retained and that they had no reason to worry.
KCB said that all the staff at Chase Bank will continue working as normal with the only change being the deployment of 70 new managers from KCB to Chase Bank to facilitate the operations. The bank also assured the depositors that the corporate identity of Chase Bank will not be absorbed by KCB but will be retained and that the customers should not worry about having to switch from Chase Bank to KCB.
Chase Bank was the third bank to be placed under receivership under the directive of the current Central Bank of Kenya boss Patrick Njoroge. Mr. Njoroge has been hailed for bringing sanity into the Kenyan banking sector.
The other two banks were Imperial Bank and Dubai Bank. Dubai Bank recovered few months later but Imperial Bank’s recovery is like smoke in the land of no return. Of these three banks, Chase Bank is the only one that has stayed in the cold for less than a month. Analysts have said that this might be due to the competent products that the lender was offering to the young generation especially entrepreneurs.
The coming down of Chase Bank came as a shock to many and according to the CBK, the main reason was due to massive withdrawals from panicking customers as a result of social media rumours.
Article by Juma Fred.
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