Chase Bank chairman and MD step aside
What you need to know:
The CBK told reporters that the high non performing loans in the sector could have been as a result of weak lending policies laced with management failures and interests.
Chase Bank chairman Mr Zafrullah Khan and group managing director Mr Duncan Kabui following concerns over the credibility of the bank’s financials.
“Following the publication of the 2015 financial statements Mr Zafrullah Khan and Mr Duncan Kabui have stepped aside from the positions of chairman and Group Managing Director respectively,” said the bank in a statement to the media.
Chase Bank has attracted attention after its earnings dropped from a profit of Sh2.3 billion in 2014 to a loss of Sh742 million in 2015. Insider loans and advances jumped from Sh1 million to Sh10 million in the period under review.
Chase Bank's non performing loans jumped from Sh3 billion in 2014 to Sh11 billion in 2015.
Weak lending policies
The central bank Wednesday blamed mounting banking sector woes on weak lending policies and management failure.
The CBK told reporters that the high non performing loans in the sector could have been as a result of weak lending policies laced with management failures and interests.
The Central Bank of Kenya Wednesday said it will implement stringent checks even IT audits after National Bank managers were sent home following an audit by the board.
The Governor Dr Patrick Njoroge however said he wont comment on individual banks when asked about social media rumours over the health of Chase Bank. "We are going for stringent auditing of bank books including IT audits," the governor said.
Dr Njoroge also said that 80 per cent of the country's liquidity is held by the top seven bank.
