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Now Imperial Bank under receivership for 12 months
kasibitta
#61 Posted : Tuesday, October 13, 2015 3:32:55 PM
Rank: Member

Joined: 2/7/2014
Posts: 155
timuka wrote:
Bigchick, Boris Boyka, FUNKY, Guest (42), kasibitta, kryptonite, KulaRaha, lochaes, mawinder, mnandii, Ngogoyo, Pesa Nane, rosa, streetwise, Tgoldman, timuka

Eishhh!!!!



Its Harsh.if what is said there is true...then this is going to scare the public.People will reduce amounts in bank account to bare minimum.
mnandii
#62 Posted : Tuesday, October 13, 2015 3:34:30 PM
Rank: Elder

Joined: 10/11/2006
Posts: 2,304
It is sad people. Public confidence in banks is in tatters now just because of one headline. If you understand about fractional reserve then you will appreciate the grim situation. Basically in a bank run where people decide to withdraw their savings from banks the banking industry undergoes a crisis.

@mawinder is hinting that people are withdrawing from other institutions. It is important to remember that when you put your money in a bank, the bank does not safely tack it away in a safety deposit box! The bank actually gives your money out to others. What's more, with fractional reserve, the bank gives out more than it owns.

Therefore if depositors decide to withdraw, only the first few will be able to get money. At some point it becomes overwhelming for the bank and thus liquidity crisis hinted by @mainat.

It's sad folks if people decide to withdraw in droves.

This is just so you understand the beast called a bank. Not meant to scare you please!
Conventional thinkers waste time building shelters when they are unnecessary and then have no shelters when they need them the most. Socionomists do the opposite.
alma1
#63 Posted : Tuesday, October 13, 2015 3:43:07 PM
Rank: Elder

Joined: 9/19/2015
Posts: 2,871
Location: hapo
mnandii wrote:
It is sad people. Public confidence in banks is in tatters now just because of one headline. If you understand about fractional reserve then you will appreciate the grim situation. Basically in a bank run where people decide to withdraw their savings from banks the banking industry undergoes a crisis.

@mawinder is hinting that people are withdrawing from other institutions. It is important to remember that when you put your money in a bank, the bank does not safely tack it away in a safety deposit box! The bank actually gives your money out to others. What's more, with fractional reserve, the bank gives out more than it owns.

Therefore if depositors decide to withdraw, only the first few will be able to get money. At some point it becomes overwhelming for the bank and thus liquidity crisis hinted by @mainat.

It's sad folks if people decide to withdraw in droves.

This is just so you understand the beast called a bank. Not meant to scare you please!


Maybe then the prudent thing to do would be to stop issuing statements on this case and quickly inform the public exactly what "unsafe or unsound business conditions" means.

Otherwise any statement shall not be trusted and more will go to their banks to withdraw.

Chilling is not the word to use here but I thought Imperial Bank was great. Their employees are in utter shock.

Thieves are not good people. Tumeelewana?

selah
#64 Posted : Tuesday, October 13, 2015 3:53:53 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
Quote:
The board of directors of Imperial Bank Limited brought to the attention of the CBK
inappropriate banking practices that warranted immediate remedial action in order to
safeguard the interest of both depositors and creditors.

CBK and the board of directors
of Imperial Bank Limited are working closely on a feasible resolution mechanism for
Imperial Bank Limited (In Receivership). The appointment of KDIC to take control of
the management of the bank is intended to provide a platf
orm for KDIC to execute its
statutory mandate with the support of the board of directors of Imperial Bank Limited
towards restoring the safety and soundness of the bank.



https://www.centralbank.go.ke/im..._CMA_-_Imperial_Bank.pdf


the Other Thing to Note is that imperial bank Uganda has been registering loses that nearly wiped out its core capital ....The shareholders had to recapitalize last year just to stay afloat.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
streetwise
#65 Posted : Tuesday, October 13, 2015 3:57:26 PM
Rank: Veteran

Joined: 6/23/2011
Posts: 1,740
Location: Nairobi
The sad bit is not people doing panic withdrawal, the sad bit is management who choose not to take care of your hard earned money and I mean very hard.
Impunity
#66 Posted : Tuesday, October 13, 2015 4:15:21 PM
Rank: Elder

Joined: 3/2/2009
Posts: 26,331
Location: Masada
Msa Liti wrote:
Hearing G*** too is in sh#t as well!


Don't quote me


Gu****an Bank

d'oh! d'oh! d'oh!
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.

kryptonite
#67 Posted : Tuesday, October 13, 2015 4:15:35 PM
Rank: Member

Joined: 2/1/2010
Posts: 272
Location: Nairobi
CBK have handled this poorly, despite all their best intentions
The harder you work, the luckier you get
maka
#68 Posted : Tuesday, October 13, 2015 4:17:10 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
selah wrote:
Quote:
The board of directors of Imperial Bank Limited brought to the attention of the CBK
inappropriate banking practices that warranted immediate remedial action in order to
safeguard the interest of both depositors and creditors.

CBK and the board of directors
of Imperial Bank Limited are working closely on a feasible resolution mechanism for
Imperial Bank Limited (In Receivership). The appointment of KDIC to take control of
the management of the bank is intended to provide a platf
orm for KDIC to execute its
statutory mandate with the support of the board of directors of Imperial Bank Limited
towards restoring the safety and soundness of the bank.



https://www.centralbank.go.ke/im..._CMA_-_Imperial_Bank.pdf


the Other Thing to Note is that imperial bank Uganda has been registering loses that nearly wiped out its core capital ....The shareholders had to recapitalize last year just to stay afloat.


possunt quia posse videntur
enyands
#69 Posted : Tuesday, October 13, 2015 4:25:13 PM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
guys I don't think there has to be anything with the books. there is more to it. there was something illegal contrary to the common banking rules and regulations that was flawed by this bank in both countries. there is either money laundering or something.....it will surface
maka
#70 Posted : Tuesday, October 13, 2015 4:28:27 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
enyands wrote:
guys I don't think there has to be anything with the books. there is more to it. there was something illegal contrary to the common banking rules and regulations that was flawed by this bank in both countries. there is either money laundering or something.....it will surface


True...
possunt quia posse videntur
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