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NIC appointed asset and liability consultant for closed Imperial Bank

NEWS
By Standard Reporter | June 21st 2016

NAIROBI, KENYA: NIC Bank will act as the asset and liability consultant for the Imperial bank, which is currently under receivership.

The role endorsed by Central Bank of Kenya on Tuesday will also enable NIC advice Kenya Deposit Insurance Corporation (KDIC) in regards to the servicing of loans, staffing and other assets of Imperial bank.

“As the Asset and Liability Consultant, NIC Bank will analyse Imperial bank’s asset and liabilities portfolio to enable the KDIC to determine the options available. This will entail an assessment of the portfolio together with a review of the underlying documentation in order to identify the quality of the assets and liabilities and any risk attendant thereto,” reads a statement from Kenya Deposit Insurance Corporation.  

As part of this appointment, NIC Bank will disburse, on behalf of KDIC, payment to the depositors of Imperial Bank on terms and conditions to be mutually agreed.

It is the intention of KDIC to make an additional tranche of Sh9 billion available to depositors for disbursement immediately subject to the removal of any judicial impediment.

KDIC envision the disbursement to commence in early July 2016.

This is on the back of an initial disbursement of Sh7 billion made available through Diamond Trust Bank Kenya Limited (DTB) and KCB Bank Kenya Limited (KCB).

Subject to a due diligence and contract, the KDIC and NIC Bank will enter into negotiations leading to the disposal by the KDIC and the assumption by NIC Bank of certain assets and liabilities, as well as the majority of the staff and branches of IBL.

“We believe the conclusion of this process, together with previous disbursements, will achieve a cumulative pay-out ratio of approximately 59 per cent to the depositors in a structured fashion. Other efforts will continue to pursue recoveries for IBL to the further benefit of depositors and other stakeholders.”

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