If Your Money Is In Chase Bank, You Might Want To Know This

According to Central Bank of Kenya, all 62 branches of Chase Bank will be reopened by Wednesday 27 April. 

Chase has not been opened for two weeks now as it was placed into recevership on 7 April. This was after an audit showed that the bank experienced bad debts for loaning its directors $80m (£55m), which increased to $100m.

Prior to the predicament of Chase Bank, the central bank said “inaccurate” rumours on social media had led customers to do panic withdrawals and had caused a run on the bank.

According to the statement issued by Governor Patrick Njoroge, the rumours which were spread on social media played a significant role in the bank’s problems, as customers stomped the bank’s branches on Wednesday to withdraw their cash, and the bank could not deal with the withdrawals.

Read Also: Everything You Need To Know About Chase Bank Receivership

As the bank is ready to open again, some terms have been set up to guide the reopening. CBK said the reopening of Chase Bank will see Kenya Commercial bank holding the biggest stake in Chase as well as spearheading the restructuring of the bank.

Also, the customers who have been worried since the big closure will be allowed to withdraw amount less or equal to one million Kenyan shillings ($10,000; £7,000) when the bank reopens.

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The Central Bank had placed Chase Bank into receivership for 12 months since as it was not able to meet its Financial obligations. The decision led to all 62 of the bank’s branches being shut down until new management would be formed. As a result, Chase sacked its Chairman and Group Managing Director after the release of two conflicting financial statements.

CBK, after noting that the bank was reportedly going through severe liquidity and capital deficiencies, assured that it would handle the situation within one year and also crack down on rogue bankers.