Central Bank Speaks Out on Banks Closure

The Central Bank of Kenya has dismissed a list making rounds on social media allegedly identifying banks to be closed for failing to meet “certain thresholds”.

The list circulated on social media caused panic to customers as it was released moments after Imperial Bank had been put on receivership due to reported inappropriate banking practices.

CBK in a statement distanced itself from the message, cautioning the public from heeding to the false reports. It further assured Kenyans that the banking sector was stable.

“CBK continues to assure members of the public that Kenya’s banking sector remains safe and robust. CBK will continue to oversee the banking sector and work with the Kenya Bankers Association (KBA) to ensure that it provides appropriate support and information to avert any speculation that may undermine market confidence,” the statement read in part.

The regulator further indicated that the Imperial Bank Limited represented only 1.8 per cent of the banking sector therefore did not translate to the crippling of the whole industry.

The Imperial Bank Limited was Tuesday put on receivership for a maximum period of one year due to among other reasons, irregularities and malpractices in the Bank which exposed depositors, creditors and the banking sector to financial risks.

The Bank will be received by the The Kenya Deposit Insurance Corporation (KDIC) as appointed by CBK to control assets, liabilities, business and affairs of the financial institution.