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Now Imperial Bank under receivership for 12 months
Rank: Member Joined: 2/7/2014 Posts: 155
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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.
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Rank: Elder Joined: 10/11/2006 Posts: 2,304
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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.
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Rank: Elder Joined: 9/19/2015 Posts: 2,871 Location: hapo
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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?
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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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.pdfthe 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
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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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.
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Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
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Msa Liti wrote:Hearing G*** too is in sh#t as well!
Don't quote me Gu****an Bank  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Member Joined: 2/1/2010 Posts: 272 Location: Nairobi
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CBK have handled this poorly, despite all their best intentions The harder you work, the luckier you get
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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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.pdfthe 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
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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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
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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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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Rank: Elder Joined: 7/26/2007 Posts: 6,514
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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 Or maybe its an inexperienced CBK Governor using a hammer to open a groundnut, with little regard to the damage this can do to the whole system? Business opportunities are like buses,there's always another one coming
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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maka wrote: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... As received 👇🏾 TO ALL, PLEASE NOTE THAT IBL WILL BE CLOSED FOR A PERIOD OF 2 TO 4 WEEKS AS CBK ARE INVESTIGATING FRAUD BY THE LATE MD AND SOME OF HIS SENIOR MANAGERS, PLS REMAIN CALM. WILL BE UPDATING U . Bank is under receivership but not under liquidation. So we are under audit for the next two weeks or so after which we will know the way forward. However assurance is that operations will continue after the audit and so you will have access to your accounts. For enquiries on imperial bank you can contact Kenya Deposit Insurance Corporation on 077088792 possunt quia posse videntur
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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Sita sema what I think...I may be quoted. Ama walisupport ISIS kind of group
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Rank: Elder Joined: 11/5/2010 Posts: 2,459
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maka wrote: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.pdfthe 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. Eish!! Exactly what is happening here ?
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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sparkly wrote:Wth if big banks are in manure how about the SACCO sector? huko watu watalia My guess is Sachos (as my friend calls them) are your best bet. So many Hallos on this thread  "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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murchr wrote:sparkly wrote:Wth if big banks are in manure how about the SACCO sector? huko watu watalia My guess is Sachos (as my friend calls them) are your best bet. So many Hallos on this thread Ati "Hallo's" Nikumoto. "1st tier" Sacco's should be doing well flooding now. However if you are in roadside, second generation Saccos you may be at risk. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: New-farer Joined: 12/1/2014 Posts: 45 Location: Nairobi
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Its a sad state coming as a shock to all stakeholders.
Information has it that since the passing of the former group MD there has been serious wrangles in the management with other shareholders seeking to have their own as the lead. The head credit had been appointed as the acting. The bank majorshareholder is Imperial Securities Ltd whose principal shareholder is the late 'Janmohamed'
Its more of a statutory management under CBK to help control the wrangles rather than a receivership which is more worse.
Lets wait for KDIC to give a way forward, No need to panic i would say.
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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KulaRaha wrote: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 Or maybe its an inexperienced CBK Governor using a hammer to open a groundnut, with little regard to the damage this can do to the whole system? The man cannot be swayed with money, women or vanity. bankers are on their own... Life is short. Live passionately.
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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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! @mnandii I also gave some hint on fractional reserve banking to @mawinder in the dubai bank saga(hope he is not in the crossfire this time around). When it comes to bank stocks the first step before investing is always to compute the liquidity ratios(not to be confused with statutory capital ratios as dictated by cbk). Profitability here plays second fiddle. With fractional reserve banking it does not matter whether a bank is solvent or not, once you have a bank run its curtains. Thats why loans to deposit ratio is both paramount in assessing a bank and at the same time a tad funny if you factor in the reserve holding percentage. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Impunity wrote:Msa Liti wrote:Hearing G*** too is in sh#t as well!
Don't quote me Gu****an Bank Guaranty??? Receive with simplicity everything that happens to you.” ― Rashi
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Now Imperial Bank under receivership for 12 months
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