Imperial Bank placed under 12-month receivership

October 13, 2015 8:42 am
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The bank's receivership follows its launch of a Sh2billion corporate bond offer in August which was due to be listed on the Nairobi Securities Exchange on the 30th of this month.
The bank’s receivership follows its launch of a Sh2billion corporate bond offer in August which was due to be listed on the Nairobi Securities Exchange on the 30th of this month.
NAIROBI, Kenya, Oct 13 – Imperial Bank Limited has been placed under receivership for a year by the Central Bank of Kenya.

In a statement, CBK announced the appointment of Kenya Deposit Insurance Corporation (KDIC) to assume management and control of the bank for a period of 12 months.

“CBK has become aware of unsafe or unsound business conditions at Imperial Bank Limited,” read the statement.

The move is in line with Section 43(2) of the Kenya Deposit Insurance Act that requires CBK to appoint KDIC as a receiver of a bank if, among others, unsafe or unsound business conditions to transact business exist.

Customers seeking information about Imperial Bank Limited can get in touch with them on the telephone number 0770887992 or send an email [email protected]

KDIC’s overall objective is to provide a deposit insurance scheme for depositors of member institutions licensed by CBK, to receive, liquidate and wind up any institution in respect of which it is appointed receiver or liquidator in accordance with the law.

KDIC has therefore assumed control of the assets, liabilities, business and affairs of the bank.

Due to the receivership, the bank’s normal operations are suspended except for the collection of loan re-payments or any other payments into the bank.

Founded in 1992, Imperial Bank was ranked seventeenth on total customer deposits at 1.8 percent of total industry.

It was also ranked position seventeen in the country in terms of core capital at Sh6.5billion at the end of the 2014 fiscal year.

Additionally, Imperial Bank’s gross advances gave it the seventh slot with 1.6 percent of the total industry.

The bank’s receivership follows its launch of a Sh2billion corporate bond offer in August which is due to be listed on the Nairobi Securities Exchange later this month on the thirtieth.

The CBK also placed Dubai Bank under receivership in August this year.

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