Relief for depositors as Chase Bank reopens
Chase Bank on Mama Ngina Street in Nairobi on April 27, 2016 upon reopening. PHOTO | SALATON NJAU
What you need to know:
- The bank’s automated teller machines, its internet and mobile banking platforms were all operational as usual but services such as registration of new customers, international and domestic transfers were unavailable.
- Individuals with existing deposits will not be able to access loans until KCB undertakes to verify the collateral and documentation upon which existing loans were issued.
Chase Bank’s 57 branches were this morning reopened to customers who visited the lender to access their deposits for the first time since it was placed under receivership on April 7.
A spot check of the bank's city centre branches on Kimathi and Mama Ngina streets and River Road found customers queuing normally in the banking halls to transact.
The bank’s automated teller machines and its Internet and mobile banking platforms were all operational as usual but services such as registration of new customers and international and domestic transfers were unavailable.
Chase Bank was placed under receivership by the Central Bank of Kenya (CBK) three weeks ago following a run on deposits and has now been reopened under the management of Kenya Commercial Bank.
“We recognise the fact that our customers have been regrettably inconvenienced over the last two weeks,” Paul Russo, the receiver manager appointed by KCB, said in a statement.
“We thank them for their support and remain deeply committed to our customer service promise. Chase Bank’s unparalleled support to the small and medium sectors will continue unabated.”
Customers who visited the branches or transacted via the Internet or mobile banking could only access a maximum of Sh1 million from their accounts, the ceiling amount set by the CBK last week.
This withdrawal cap allows 167,290 account holders (equivalent to 97 per cent of customers) to receive their funds in full, a number that could explain the normal activity seen at the bank's outlets.
Individuals with existing deposits will not be able to access loans until KCB undertakes to verify the collateral and documentation upon which existing loans were issued.
“We take the appointment as the receiver manager for Chase Bank Limited as a strong message that the Kenyan banking system has the capacity to offer globally benchmarked but locally relevant solutions to market challenges,” said Joshua Oigara, KCB’s chief executive officer.
Chase Bank took to Twitter to inform customers of the reopening of branches and assuring them that they are “back and stronger” under the oversight of the CBK and KCB’s receiver managers.
The lender's social media team fielded queries from customers about which services were immediately accessible both at the branch and on their Internet-enabled devices.
“You do not need to withdraw your money because we are now more stable and stronger than before. We look forward to continuing building stronger relationships with you.” Chase Bank said on its Twitter page.
