Short-term inter-bank lending falls after Chase Bank debacle

Short-term lending from one commercial bank to the other has slumped following the collapse of Chase Bank in April, wiping out gains that had earlier been made in the redistribution of deposits among the lenders.

The value of transacted amounts in the three months between April and June stood at Sh6 billion, said a market player who declined to be quoted as he was not authorised to release the information. The amount was a sharp drop compared to the period before Chase Bank’s closure.