Chase Bank depositors to shift to SBM Bank in a few weeks
5 months ago, 12 Jan 23:12
About 35, 235 Chase Bank deposit accounts opened during the period it has been under receivership will be transferred to SBM Bank accounts in a few weeks’ time. According to Central Bank governor Patrick Njoroge, depositors of such accounts will work with SBM when their accounts are moved over. “When the transfer happens, those with such accounts will work with SBM in an account similar to the one they have at Chase Bank, the only thing that will change is the name, the process will remain the same,” Njoroge said. At least Sh6 billion has been deposited at Chase Bank through the new accounts opened during the period it has been under receivership. In January 4, this year, Central bank of Kenya accepted a binding offer from the SBM holdings that will cover a portion of assets and liabilities of Chase bank, which has been in receivership since April 6, 2017. The bank which boasts of assets in excess of $4 billion (Sh412 billion) entered Kenya by taking over Fidelity bank in May last year. While the transfer of this accounts is yet to take off, Njoroge said that depositors who had accounts in Chase bank before it went under receivership will have 75 per cent of their deposits moved over to the SBM account. Once transferred, they will access it in three portions.The first 18.75 per cent will be available in a current account from the first day when the transfer is complete. It is still not clear when the first day is, but Central bank said it should be expected in a few weeks. The second 18.75 per cent will be available in a savings account, earning a 7 per cent interest on an annual basis while the last 37.5 per cent will be available in an SBM term deposit account which will mature in three years earning 7 per cent interest. The remaining 25 per cent of the depositors cash, Njoroge said, will be held at Chase bank as they search for a solution in partnership with relevant stakeholders. The total restricted deposit for these accounts adds up to Sh76 billion, which is part of the Sh2.9 trillion banking sector report. Also to be transferred are loans which according to CBK will take a period of two months, while the related party deposits will remain at Chase bank. These accounts belong to people sued on matters related to the bank. Moving forward, central bank, intends to operationalize the binding offer before alerting the depositors. Together with Kenya Deposit Insurance Corporation , Central bank met Chase bank depositors early this week and have confirmed acceptance of the offer by the depositors.
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