Kenya’s NIC Bank is set to acquire some deposits, assets and liabilities of collapsed lender Imperial Bank (IBL), which was placed under statutory management in October 2015.
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The agreement was inked with Imperial’s receiver manager Kenya Depositors Insurance (KDIC) after the bank failed to provide assurances and implement a plan that would help reopen the bank.
NIC will now assess the quality of IBL’s assets and liabilities, support the recovery of IBL’s loans, and offer guidance on other assets and on staffing. The bank will also take over majority of IBL staff and branches.
"This step was taken to safeguard the interest of IBL’s depositors and creditors, and in the wider public interest," Central Bank of Kenya said in a statement.
KDIC will retain management and control of all the IBL assets and liabilities that will not be offloaded.
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By GlobalDataThe Central Bank of Kenya said: "NIC will disburse on behalf of KDIC a maximum of Ksh.1.5 million each to the remaining IBL depositors, as soon as the High Court’s suspension of payments to IBL depositors is lifted, and subject to account and identity verifications that were conducted previously.
"Once completed on this basis, 45,700 depositors (equivalent to 92 percent of depositors) will have been paid in full or not claimed their balances of less than Ksh.2.5 million. A High Court ruling on the suspension of payments is expected on July 4, 2016."
