When Central bank of Kenya made a decision to put the three banks under receivership that is; Dubai, Imperial bank and Chase bank, many issues were raised. But what actually happened?
Dr. Patrick Njoroge, Governor for central bank explains in detailed how the whole scenario was.
Dr. Patrick Njoroge emphasized that as Central Bank of Kenya they have never in any moment have recorded that they are under-tooled in supervising the banking system of Kenya.
An assessment of the banking sector was conducted in 2009 and the report showed that the Central Banks framework was in the right position but they pointed out some changes in framework.
“The Central Bank of Kenya has always had the necessary tools to adequately supervise the banking system.” Said Njoroge
Dr. Njoroge further indicated that they have been having concerns of the banks before they were put under receivership but they were having them under close supervision and when the banks failed their mandate, they decided to put them under receivership.
According to Njoroge, placing a banking institution under receivership is not an overnight decision, he explains that they are principles and laws that they have to consider before making that critical decision.
He further added that the banks under receivership must be held accountable for the various crimes they committed.
WHAT IS THE WAY FORWARD?
- Will undergo liquidation
- The individuals who were involved in the fraud will be held accountable.
- It’s still complicated to decide on the way forward for the institution because the individuals involved haven’t cleared their names yet since the shareholders accountable are awaiting to answer the charges in court hence the need for more time for the decision to be provided.
- Chase bank was reopened and the good news is that all its banking services are available.
- There are plans to expand access for large depositors and creditors.
The Governor Concluded with a quote “With malice towards none, with charity to all, involvements in the right we will strive on to finish the work that we have started.”