Customers of the collapsed Dubai Bank have been allowed to only continue servicing their loans even as the lender’s receiver manager locks them from accessing current and savings account.
Kenya Deposit Insurance Corporation (KDIC) said it has opened the bank’s four branches open for loan repayments only as it kicks of assessment of the lender.
“Accordingly, normal operations of the Bank are suspended except for collection of loan re-payments or any other payments into the Bank. Debtors are therefore encouraged to continue servicing their obligations,” said KDCI Chief executive, Aggrey Jonathan Bett.
Last week Friday the corporation was appointed by Central Bank of Kenya (CBK) as a receiver of Dubai Bank Kenya Limited (the Bank) for a maximum period of twelve (12) months.
The Bank was placed under receivership due to liquidity and capital deficiencies which exposed depositors, creditors and the banking sector to financial risk.
More than 6,000 customers had deposits less than Sh 100,000 and are considered safe than close to 1,000 others whose savings exceeds the amount the receiver would refund customers when the bank collapses.
At this point, all insured deposits shall be paid by KDIC up to a maximum of Sh 100,000.00 per depositor. Any balances above this amount shall equitably be paid as and when the liquidator accumulates enough funds from sale of assets of the collapsed Bank and recoveries from outstanding loans and debts, said the corporation in a statement.
KDIC expects to finalize the assessment of Dubai Bank and take a decision on the resolution method by 31st August, 2015.
“In this respect, KDIC will on 1st September, 2015 inform the depositors, creditors and all other stakeholders the next process regarding access to their deposits, rights and obligations,” said Bett.
