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Kenya

CBK okays liquidation of Charterhouse Bank Limited, appoints KDIC as liquidator

NAIROBI, Kenya, May 7- The Central bank of Kenya has approved the liquidation of Charterhouse Bank Limited.

CBK through a statement said that the decision was made after it received the statutory management report proposing that the bank be liquidated since it failed to adhere to the banking act.

The report indicates that in view of the severe violations of the Banking Act by CHB and its inability to address them, liquidation is the only feasible option,” reads the statement

“CBK has assessed the recommendation and considered that liquidation would facilitate the orderly resolution of the assets and liabilities of CHB in accordance with the Laws of Kenya, to protect the interest of CHB depositors, its creditors, other stakeholders and the wider public interest,” he added.

The bank regulator has therefore appointed the Kenya Deposit Insurance Corporation liquidator of Charterhouse Bank Limited (CHB) in terms of Section 54(1)(b)(v)of the Kenya Deposit Insurance Act, 2012.

Charterhouse Bank Limited on June 23, 2006 was placed under statutory management pursuant to Section 34(1) (d) of the Banking Act.

According to CBK, this was after the bank followed severe violations of the Banking Act by CHB relating to lending, accuracy of returns submitted to CBK, and failure to obtain account opening documentation for several customers.

“The placement of CHB under statutory management and take over by CBK was done in the interest of the bank’s depositors, creditors and members of the public,” CBK adds.

KDIC will release information about the liquidation of CHB and payment of depositors in due course.

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