Central Bank Governor, Dr Patrick Njoroge to address a Press conference on Chase Bank Limited (In Receivership) today at 10:30

Dr. Njoroge: Chase bank would have survived had they dealt with the insider lending, non performing loans
Dr. Njoroge: Chase banks issues are not complicated as compared to Imperial Bank.
Dr. Njoroge: Shareholders in our meeting this morning agreed to put on liquidity to Chase bank that will allow it be reopened.
Dr. Njoroge: Yesterday spoke to the banks management multiple times to support them. Talked to institutions to support Chase bank too
Dr. Njoroge: Yesterdays haemorrhage on deposits was so large, Chase bank could not meet its obligations.
Dr. Njoroge: We met with shareholders on March 30, including institutional ones to increase their resources.
Dr. Njoroge: Social media rumours was reckless, led to a run on deposits of Chase bank
Dr. Njoroge: Chase bank has been under pressure since October, lead to narrow margins to maneuver.


Dr. Njoroge: Chase bank was yet to receive the Sh5 billion it signwd with Africa Development Bank {Afdb} last week.
Dr. Njoroge: Africa Development Bank Ksh5 billion signed last week hadn't been disbursed.

The problem of welding all the time is that the smoke enters your brain once too often.

Any economics student will tell you, there is nothing to be excited about when a bank, any bank, shuts down.

It has far reaching consequences even for those not banking there.

For example, chase being a SME modelled bank is probably holding onto deposits from very many small businesses, who today cannot meet their obligations.

And the ripple effects to the other banks is huge. Don't believe the hype that some other bank will benefit from the failure of another, people will put less money in those banks.

When I see the Dr. Njoroge laughing up and down the street about his excitement on shutting down a bank, I'll join you.

But welders minds as I said have too much smoke in them.

Banks have to clean up their act or more will be heading down the path trodden by chase and the rest. I guess it will be question of choosing between the lesser evil for the governor, that is, a disorderly KES plus imported inflation or imprudent(NPL coverage and/or provisioning has been way too lax in a contracting economy,disregard of capital and liquidity ratios amongst other malpractices only amplify the problem) and illiquid banks tanking. So far he seems to have appetite for the latter.

Let's have a complete reset of the system as we head towards the hailed bottom.

Some fellows believe "almost" everything they hear and yap themselves, now CBK governor has started the "sweet song" to the directors kama watoto to return the loot so as to reopen the bank and save the bank, the same song he was singing to imperial, will they return the loot?... only indiets of choo choo media, facembuk and twita blogs think they will return and "save the bank", we clever wazuans all know it is hidden in some "offshore" accounts in tax havens! Watu wameficha 8 birrions warudishe

And the dominos start crumbling.

Don't be surprised to find your own bank that you are calling to safe to fail, going through these motions in a short while.

Runs on banks based on rumors have brought down countries.

People think that banks keep their money in the safe deposit box in their branch. There is no bank on earth with enough money to pay off its depositors when they all come for their monies in one day. Hakuna

I'm asking for a bit of retrospect here from the usual suspects on wazua. Scaremongering can lead straight to your safe bank.

CBK Governor p. Njoroge Press Brief

"We don' have a timeline on when Chase Bank will resume operations.

It depends on shareholders capital injection.

We met with shareholders on March 30,including institutional ones to increase their resources.

Social media rumours were reckless, led to a run on deposits of Chase Bank.

Yesterdays haemorrage on deposits was so large, Chase bank could not meet its obligations.

Chase bank would have survived had they dealt with the insider lending, non performing loans.

Africa Devpt Bank Ksh 5B signed last week hadn't been disbursed.
Chase bank hadn't received it.

Rafiki Microfinance isn't affected.

Last night we agreed with Chase Bank shareholders on amount and timeline but disagreed on who will provide the money.

Chase Bank reopening depends on when the shareholders will inject funds."

Mpesa bank is not any safer than all the banks because the money it takes is in the same banks so if the banks go under it also goes under..

IMHO, the role of auditors in the banking mess should be investigated as deeply as possible. Being a "bandit" economy the possibility of auditors being compromised is all so real.

Maka my friend, what is wrong with Rafiki?

As in what is causing the run on Rafiki right now? Have their managers looted money? Are they also running fake accounts?

Or is it that they are owned by Chase bank? So fear and rumor.

There is no safe bank my friend once people start withdrawing. You cannot tell my mom NPL ratios. If she hears her neighbour is removing money from KCB, she will remove her money and KCB shall fall.

Never underestimate the power of rumors. We are watching right now unfolding.

The lines at Rafiki also don't augur well for Genghis. Actually I'm sure some wazua blue people are very excited at that prospect.

This was a straight up hack job done very well. With lies hidden in truth.