Be Wary of Exaggerated Claims about Stability of Banks

The Kenya Bankers Association (KBA) has called on bank customers to be wary of exaggerated claims about the stability of some banks in Kenya.

According to KBA, the Central Bank of Kenya (CBK) is the main regulator of the banking industry and customers should stop relying on unverified messages across social media platforms.

Sentiments from the lenders association came hours after a certain blogger took to social media with negative sentiments about ABC Bank Group, creating panic among a section of bank customers.

“The core role of CBK is to ensure the protection of the depositors,” said KBA in a statement availed via their official Twitter handle.

The banking sector in Kenya has often been a target of fake news peddlers given its sensitivity and the panic it creates among customers.

“There are bloggers in this country whose main agenda is to blackmail brands and top executives with an aim of milking millions of shillings from them to ‘buy their silence,'” said one blogger who did not want to be identified in this story for the fear of being ‘punished through character assassination’.

Chase Bank of Kenya was the first casualty of Kenya’s social media mob justice that saw it sinking into receivership due to massive withdrawals from scared customers. The bank has since been bought by SBM Bank.

At one point, the Family Bank of Kenya almost came down after exaggerated claims about its financial stability surfaced on various social media platforms. Some customers who feared what had happened to the then Chase Bank rushed to withdraw their cash.

National Bank of Kenya (NBK) has also been a target of exaggerated claims about its stability. (For NBK, some claims such as the hacking of its systems were found to be true after they were confirmed by the bank).

The bankers’ association has moved to assure customers of the safety of their deposits with their members.

“KBA members are required to adhere to CBK guidelines and the provisions of the Banking Act. As such, customers should be weary of exaggerated claims about a banks stability,” stated KBA.

What you should do when you see negative sentiments about your bank

The majority of customers often panic every time they see information indicating the possibility of their bank going down with their cash.

No one wants to lose their hard-earned money, and, therefore, it is normal to panic and think about the safety of your cash.

The first thing to do is to call your banker. Ask them whether whatever you might have seen or heard is true. Ask them openly whether you should be worried.

Do not rush to withdraw your cash, especially if you have large deposits. That might put your money at a greater risk. In fact, some people create panic so that people can withdraw their cash and be robbed on their way from the bank. You didn’t know this? Well, it happens.