NAIROBI: Kenyan Finance Minister Henry Rotich said on Friday that the country's financial system was very sound, a day after privately-owned Chase Bank Kenya was put under receivership.
Central bank Governor Patrick Njoroge said he had warned commercial officials of stern action if they put depositors' money at risk.
Rotich told a news conference the ministry was working closely with the central bank to isolate and contain the impact of two closed banks on the financial system, adding that three recent cases of bank receivership were isolated.
The central bank on Thursday put Chase Bank under a 12-month receivership following a run on deposits sparked by fears over the health of the mid-sized lender's finances.
Speaking at the same news conference, central bank Governor Patrick Njoroge said he would crack down on errant bankers who jeopardised depositors' money.
"We cannot tolerate rogue bankers, those who in effect steal from depositors," Njoroge said, pledging to punish those who flout regulations. Njoroge had said on Thursday Chase Bank's shareholders had committed to raise funds to pave the way for the bank to be re-opened soon and that the problems there were not as bad as that of another lender under receivership, Imperial Bank.
Mid-sized Imperial Bank was taken over in October, two months after a smaller lender, Dubai Bank.
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