Arab Today, arab today kenya says financial sector crisis averted after chase bank collapse
Last Updated : GMT 01:38:25
Arab Today, arab today
Arab Today, arab today

Kenya says financial sector crisis averted after Chase Bank collapse

Arab Today, arab today

Arab Today, arab today Kenya says financial sector crisis averted after Chase Bank collapse

Chase Bank
Nairobi - XINHUA

Kenya has managed to stop a financial sector crisis from spreading to lending institutions after the sudden collapse of Chase Bank, a middle-level bank which lend to small and medium enterprises and corporate entities, Central Bank Governor Patrick Njoroge said on Friday.

"There was a strong growing storm about to hit the financial system," Njoroge told reporters exactly a week after the financial sector regulator ordered the Chase Bank into receivership for failing to meet the cash requirements of its depositors.

"The flood would have come through,"said Njoroge, explaining the rising demand for cash withdrawals from other cash depositors after the Chase Bank crisis.

The CBK Governor noted that there was still an imbalance in the distribution of money supply within the economy, which also posed some kind of risk to the financial sector.

Chase Bank, which had 170,000 account depositors and 721 million U.S. dollars worth of customer deposits, was forced into receivership after failing to meet the demands of its customers.

Njoroge said the Central Bank moved against Chase Bank after the bank's management failed to answer questions raised by auditors regarding billions of shillings worth of loans to directors and staff.

Chase Bank provided insider loans to its directors and staff, but these were not backed by any credible repayment plans, pointing to a risk of financial contagion should the debtors fail to service the loans.

"We had no choice but to put the bank in isolation. It is a body blow to the financial system, but we are now past the tipping point and approaching a new normal. The point is there is need for transparency. The insider lending to the bank directors called into question the bank's corporate governance," Njoroge said.

According to the governor, auditors were required to inform the bank of any issues arising from an audit of the commercial banks.

The management of the bank appeared unsettled by the queries raised by the auditors and ended up publishing a report without the approval of the auditors.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today kenya says financial sector crisis averted after chase bank collapse Arab Today, arab today kenya says financial sector crisis averted after chase bank collapse

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016

GMT 05:15 2017 Tuesday ,21 February

Gold firms as markets await Trump tax plans

GMT 04:58 2017 Tuesday ,21 February

EU, IMF in ‘common position’ on Greece crisis
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday