CBK issues warning against false social media messages

The Central Bank of Kenya has warned the public against heeding messages that are being circulated on social media platforms purporting to identify banks that have not met “certain thresholds” saying they are false.

In a statement on their website, the financial services regulator sought to assure the public and financial markets that Kenya’s banking industry remains robust and safe.

The list of 20 banks began circulating Tuesday following the announcement by CBK that Imperial Bank Limited had been put under receivership due to unspecified malpractices, spreading panic among customers.

CBK in the statement reiterated that Imperial Bank represents 1.8 per cent of the industry thus the move to put it under receivership will not affect the sector.

The financial regulator also confirmed that the board of directors of the privately owned Imperial Bank Limited volunteered to disclose the bank’s situation to the regulator, thus prompting CBK to put the bank under the management of the Kenya Deposit Insurance Corporation to ascertain the extent of malpractices and protect depositors’ funds.

In the meantime, CBK says it is ready to provide adequate liquidity to support the banking system and ensure its stability and robustness.

“CBK will continue to oversee the banking sector and work with the Kenya Bankers Association (KBA) to ensure that it provides appropriate support and information to avert any speculation that may undermine market confidence,” read the statement in part.