NIC Bank Appointed Consultant for Closed Imperial Bank’s Assets and Liabilities

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The Central Bank of Kenya (CBK) has appointed the National Industrial Credit Bank (NIC) as a consultant to assess the quality of Imperial Bank’s assets and liabilities after its shareholders rejected a proposal that would allow the bank’s reopening.

Imperial Bank was put under receivership in October 2015 following fraudulent activities and unsound business practices.

It is one of three small and medium-sized lenders to be closed in Kenya in under one year, unnerving investors in the region.

The appointment will allow depositors of Imperial Bank a structured access to a portion of their deposits, through NIC Bank.

The bank will disburse a maximum of KSh1.5 million each to the remaining depositors, once an expected July 4 court ruling lifts suspension of payments to Imperial Bank’s depositors and subject to identity and account verification.

Once completed on this basis, 45, 700 depositors, equivalent to 92 per cent of depositors, will have been paid in full or not claimed their balances of less than KSh2.5 million, the CBK said in a statement on Tuesday.

NIC will then assume a portion of the remaining verified deposits, a majority of Imperial Bank’s staff and branches and certain other assets and liabilities.

The CBK urges borrowers of Imperial Bank to continue making payments on their loans as recovery of the bank’s loans continues and to allow access to additional resources by depositors.

NIC Bank’s appointment is in joint agreement with state receiver Kenya Deposit Insurance Corporation (KDIC).

According to CBK Governor Patrick Njoroge, this does not mean NIC Bank is acquiring Imperial Bank.

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