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The Central Bank of Kenya (CBK) Friday appointed the Kenya Deposit Insurance Corporation (KDIC) as liquidator of Charterhouse Bank Limited (CHB).
The regulator said that the move had been reached following a submission of the Statutory Management Report by the Statutory Manager on May 6, 2021, recommending that CHB be liquidated, adding that the recommendations were in view of the severe violations of the Banking Act by CHB and its inability to address them, liquidation is the only feasible option.
“CBK has assessed the recommendation and considered that liquidation would facilitate the orderly resolution of the assets and liabilities of CHB in accordance with the Laws of Kenya, to protect the interest of CHB depositors, its creditors, other stakeholders and the wider public interest,” noted the regulator in a statement to newsrooms today.
On June 23, 2006, CBK placed CHB under statutory management accusing the lender of violating Banking Act by CHB relating to lending, accuracy of returns submitted to CBK, and failure to obtain account opening documentation for a number of customers.
“The placement of CHB under statutory management and take over by CBK was done in the interest of the bank’s depositors, creditors and members of the public. KDIC will release information about the liquidation of CHB and payment of depositors in due course,” noted CBK.