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Corporate

KCB tests Chase Bank system for Wednesday’s opening

The Central Bank of Kenya on April 7, 2016 unexpectedly placed Chase Bank under receivership owing to liquidity problems. PHOTO | FILE
The Central Bank of Kenya on April 7, 2016 unexpectedly placed Chase Bank under receivership owing to liquidity problems. PHOTO | FILE 

KCB Group, which was last week appointed receiver manager of the collapsed Chase Bank, said it had completed testing the lender’s IT systems and was ready to serve customers starting Wednesday.

Customers of the troubled bank will be allowed to withdraw up to Sh1 million of their deposits.

The re-opening of Chase Bank will come as a great relief to small and mid-sized entrepreneurs who patronised the lender dubbed a “relationship bank.” 

The SME-focused lender Tuesday said its mobile banking app Mfukoni, online banking and card transactions except credit cards will be available from Wednesday morning.

The Central Bank of Kenya on April 7, 2016 unexpectedly placed Chase Bank under receivership owing to liquidity problems created by a run on the mid-sized lender from panicked depositors.

This withdrawal ceiling will see 167,290 account holders (equivalent to 97 per cent) receive their funds in full while those with cash above this amount are set to receive their money “in a structured manner” in future, the CBK said.

KCB plans to buy a controlling stake in Chase Bank, but details of the transaction remain scanty.

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