The Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) intends to seek an extension of the receivership of Imperial Bank Limited (IBLR) for up to 12 months to ensure its resolution is credible.
This is after the two institutions on Friday issued a joint statement on a tentative timeline and prospective milestones for the resolution of IBLR’s receivership.
“Mindful of the concerns by depositors and the need for the process to be fully credible to potential strategic investors in order to maximize the value for depositors, the entire process is anticipated to be about 48 weeks,” read the statement.
“The objective of such a resolution would be safeguarding the interest of depositors, creditors, and the wider public interest,” said the regulator.
In the timeline, the formal process will commence with an invitation for Expressions of Interest (“EOI”) from potential strategic investors, and the Bank’s shareholders if they so wish, in taking an interest in the Bank.
The EOIs will be evaluated and a shortlist of qualifying investors (“Shortlisted Investors”) determined in a fair process using appropriate and objective criteria based on, inter alia, regulatory imperatives and prudential guidelines which will ensure the speedy recovery for depositors, creditors and other stakeholders of the Bank, whilst also mindful of seeking to preserve and develop a sound and innovative banking system in Kenya.
A preferred investor would be selected based on the Investor Proposals, which would lead to final negotiations and completion of the transaction
The bank was placed under receivership on October 2015.