Dubai Bank clients to know fate of their monies Sep 1

August 18, 2015
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This is according to the recently appointed receiver, Kenya Deposit Insurance Corporation (KDIC), which says it will have completed assessment of the bank by the end of this month/FILE
This is according to the recently appointed receiver, Kenya Deposit Insurance Corporation (KDIC), which says it will have completed assessment of the bank by the end of this month/FILE
NAIROBI, Kenya, Aug 18 – All depositors and creditors of the collapsed Dubai Bank will know the fate accessing their monies come September 1, 2015.

This is according to the recently appointed receiver, Kenya Deposit Insurance Corporation (KDIC), which says it will have completed assessment of the bank by the end of this month.

“KDIC expects to finalise the assessment of Dubai Bank and take a decision on the resolution method by August 31, 2015. In this respect, KDIC will on September 1, 2015 inform the depositors, creditors and all other stakeholders the next process regarding access to their deposits, rights and obligations,” KDIC Acting CEO Jonathan Bett said on Tuesday.

However, KDIC which has already appointed a receiver manager, says there will be no operations at the bank during the receivership period of 12 months, except for debtors, who have been urged to continue servicing their obligations.

READ: Dubai Bank Kenya placed under receivership

In pursuit of this, Bett says KDIC will during the first two weeks of the receivership keep all the four branches of the bank open for such transactions.

“KDIC has declared a moratorium to business that shall apply equally and without discrimination of all stakeholders of Dubai Bank during the receivership period. Accordingly, normal operations of the bank are suspended except for collection of loan re-payments or any other payments into the bank,” he said.

In its assessment, the receiver manager will be looking at ascertaining the financial status of the bank, determine the most appropriate method of resolving the problem as well as take suitable measures to resolve the issues.

In the event that the receiver fails to resolve the problem by any other means, KDIC will be appointed by Central Bank of Kenya (CBK) as the liquidator and wind up affairs of the bank.

At this point, all insured deposits shall be paid by KDIC up to a maximum of Sh100,000 per depositor.

“Any balances above this amount shall equitably be paid as and when the liquidator accumulates enough funds from sale of assets of the collapsed Bank and recoveries from outstanding loans and debts,” he explained.

The bank was put under receivership the CBK on August 14, following serious liquidity challenges and capital deficiencies.

KDIC will remain the receiver for the next 12 months.

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