Chase Bank Kenya Resumes Lending

Chase Bank Kenya has received Central Bank of Kenya’s (CBK) approval to start taking fixed deposits and resume lending.

The move marks a major milestone in the turnaround efforts of the bank signaling that most of the major issues under resolution have been addressed, paving the way for full resumption of banking services to all customers.

“By taking in new deposits at market rates, customers will have more lending opportunities while the generation of much needed income to support the full recovery of Chase Bank will gain momentum,” read an official statement from the bank.

“With the active support of our customers and the relevant stakeholders, we have done what we came here to do: we have reopened the bank, stabilized its operations, renewed confidence in the bank and now we are on the final phase before successfully handing over. I believe a good job has been done so far based on our mandate from Kenya Deposit Insurance Corporation,” said Paul Russo, Chase Bank’s receiving manager.

Read: Chase Bank Kicks Off Diligence Process in its New Phase

Kenya Depositors’ Insurance Corporation (KDIC) placed the bank under receivership by in April, with KCB Bank Kenya Limited appointed as the Receiver Manager.

KDIC’s Acting Chief Executive Officer, Mohamud Ahmed said they would continue to work closely with CBK and the banking industry to mitigate possible failures. “In the unlikely event of another failure, KDIC will resolve it promptly for the benefit of depositors, creditors and the general public. We are closely monitoring Chase Bank with a view to resuming full services and wish to thank the depositors for their continued support,” said Ahmed.

Since April, Chase Bank has recorded improved inflows in excess of Ksh10 billion while thousands of new customers have also come on board since the Bank reopened its doors.

Some of the milestones that Chase Bank hit since reopening on April 27, 2016 include: allowing small depositors to access up to Sh1million, activating automated teller services, real-time gross settlement, limited lending for trade finance services up to Sh5 million, VISA services and the restoration of correspondent banking by Deutsche Bank, one of the largest banks in the world.

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