Chase Bank to start giving loans four months after reopening
Chase Bank has been given the green light to resume lending, four months after its reopening following a three-week closure that was caused by run on deposits.
The bank announced on Wednesday morning that it had obtained approval from regulator Central Bank of Kenya to restart loan issuance as well as taking term deposits.
For its reopening, the receiver manager Kenya Deposit Insurance Corporation appointed Kenya Commercial Bank to oversee operations of the bank.
“With the active support of our customers and the relevant stakeholders, we have done what we came here to do: we have reopened the bank, stabilized its operations, renewed confidence in the bank and now we are on the final phase before successfully handing over. I believe a good job has been done so far based on our mandate from KDIC,” the KCB-appointed receiver manager Paul Russo said.
However, Chase Bank is yet to payout fixed term deposits that have matured.
The bank has received deposits totaling Sh10 billion since it reopened.