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