Over 200 new accounts opened at Chase Bank

May 24, 2016
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Chase Bank was reopened after having been shut down for two weeks for failing to meet its financial obligations/FILE
Chase Bank was reopened after having been shut down for two weeks for failing to meet its financial obligations/FILE

, NAIROBI, Kenya, May 24 – Over 200 new accounts have been opened at Chase Bank since it resumed operations three weeks ago.

This is according to Central Bank of Kenya (CBK) Governor Patrick Njoroge, who says deposits have exceeded withdrawals signalling confidence in the bank.

“Chase Bank is now bouncing back to stability which also indicates that the financial sector is back to normalcy,” Njoroge told a news conference at the CBK.

Chase Bank was reopened after having been shut down for two weeks for failing to meet its financial obligations.

This was after mass withdrawals experienced at the bank following wide speculation about its stability. Nearly Sh6 billion was withdrawn forcing the bank to be placed under receivership.

Kenya Commercial Bank took over the management of Chase Bank together with Kenya Deposit Insurance Corporation.

“We are still doing an audit of the bank so that we have the evidence to incriminate the culprits… someone must be accountable,” he explained.

The bank had issued two different 2015 financial results within a week. This usually happens when the first statement has glaring inaccuracies.

One of the major differences is how Chase Bank understated insider loans and advances by Sh8 billion. The first financial statement, which Deloitte indicated as qualified opinion (basically audited accounts that do not meet financial reporting standards), showed money advanced to directors, associates and staff stood at Sh5.72 billion.

However, the restated financial statement, published on April 6, 2016, showed insider loans stood at Sh13 billion.

On Imperial Bank Limited, the CBK Governor stated that a forensic audit is still going on terming issues with the bank as complicated.

“This is the largest fraud scheme that the country has ever seen; the court cases are delaying the process, our objective is to resolve imperial bank for the benefit of the depositors,” he stated.

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