The Central Bank of Kenya (CBK) has raised concern over anxiety in the financial sector, especially following the placement of Chase Bank under receivership last week.
CBK has attributed the bank's misery to inaccurate social media reports and the stepping aside of its two directors.
The regulator said it is because of the mass withdrawals from Chase Bank, amid collapse rumours, that brought it to its knees.
CBK said it is for this reason that it will avail a facility to any commercial or microfinance bank that comes under liquidity pressures arising from no fault of its own.
“Although the CBK is confident about the strength of the banking sector, we wish to reinforce our support to the sector. Consequently, from Monday, April 11, 2016, we will avail a facility to any commercial or microfinance bank that comes under liquidity pressures arising from no fault of its own. We will avail this facility for as long as is necessary to return stability and confidence to the Kenyan financial sector,” the Bank said in a press statement.
CBK said it has confidence in the strength of the banking sector and will continue monitoring and overseeing full compliance to its laws and regulations.
The bank further assured that stern action shall be taken against rogue financial institutions managers.
“Firm action will be taken against those who have abused their fiduciary positions of management of our financial institutions,” said CBK.