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CBK approves acquisition of Chase Bank Kenya by SBM

Marcus Kiiru
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Chase Bank branch in Nairobi. (Photo/theeastafrican.co.ke)

Chase Bank’s acquisition process by State Bank of Mauritius is on the final stages, Central Bank of Kenya (CBK) and Kenya Deposit Insurance Corporation (KDIC) have disclosed.

The two institutions yesterday revealed that what now remains is ‘just a logistical interfacing’ after the approval of the acquisition of Chase Bank by State Bank of Mauritius.Speaking yesterday, CBK Governor Patrick Njoroge, said 75 per cent of depositors of Chase Bank will now be given the chance to start interfacing process into the SBM.

Depositors will get 18.7 percent in a current account once the Mauritius-based bank SBM Holdings Ltd (SBM) finalizes its acquisition of Chase Bank.Another 18.7 percent of customers deposits will be put in a savings account earning 7 percent interest.The rest of the deposits – 37.5 percent – will be available in a fixed deposit which will mature over the next three years earning 7 percent.“I cannot tell you the exact time SBM will open, but I can be certain it will be in the next few weeks,” Njoroge told Journalists in a news conference about the new deal.According to Capital, CBK has approved the acquisition of Chase Bank Kenya by SBM a move that has seen SBM Holdings acquire certain assets and matched liabilities that include the transfer of 75 per cent of the value of deposits currently under moratorium and the transfer of all staff and branches of the existing Chase Bank Kenya operations.“This was the best deal set for the bank. I want to assure Chase Bank depositors that 25 percent of the deposits under moratorium will not be lost but will remain under Moratorium,” she added.About Sh76 Billion in deposits have been held by the bank which has been under the management of the Kenya Deposit Insurance Corporation – a Government entity that protects the deposits of customers.The regulator met with the depositors on Wednesday and Thursday who have agreed to the deal.Chase Bank was placed under receivership in April 2016 following revelations of financial mismanagement that led to a bank run.

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