DUBAI BANK: Chairman In Court For Destroying The Bank

21 Dec 2015 | by
DUBAI BANK: Chairman In Court For Destroying The Bank

The chairman of the Dubai Bank Hassan Zubeidi was on Monday charged with bringing the bank on its knees.

Zubeidi was arraigned at the high court and released on a sh50 million bond.

Dubai Bank was closed on August 24, barely a week after being put under receivership for violating banking laws and regulations.

The management was also accused of failure to maintain adequate capital and liquidity ratios as well as provisions for non-performing loans and weak corporate governance structures.

The Central Bank of Kenya  said due diligence undertaken by the Kenya Deposit Insurance Corporation (KDIC) appointed by Central Bank, indicated that Dubai Bank was completely insolvent, hence the need for liquidation.

At the time of placing the bank under receivership, it was ranked as the smallest lender in Kenya, with a market share of about 0.1  per cent.

Also placed under receivership was Imperial Bank. However, the CBK was quick yo point out that unlike Dubai Bank, Imperial was placed under receivership on October 13 due to fraudulent activities and failure to adhere to sound practices. He said there were efforts to reopen Imperial Bank.

On the way forward, the Central Bank chief said investigations were going on to expose fraud and other forms of malpractice in the banking sector.

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