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{
    "id": 660903,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/660903/?format=api",
    "text_counter": 144,
    "type": "speech",
    "speaker_name": "Sen. Billow",
    "speaker_title": "",
    "speaker": {
        "id": 260,
        "legal_name": "Billow Adan Kerrow",
        "slug": "billow-kerrow"
    },
    "content": "Mr. Speaker, Sir, I wish to issue the statement which was sought by the Senator for Nyeri regarding the regulatory and legal procedures for putting a bank under receivership. We invited the Governor to the Committee to discuss this matter. There is a very elaborate answer and I think the Senator has a copy. I will briefly highlight the key issues so that he can seek clarification where he can. It was an extensive discussion for which the minutes of the Committee are available. Many other issues and supplementary questions were raised and discussed at that meeting. The Senator had sought, one, the regulatory and legal procedures followed before a bank is placed under receivership and written procedures in communication that had to be followed. He had also sought to know the extent to which regulations were followed in placing Dubai Bank, Imperial Bank and Chase Bank under receivership. He further sought to know whether placing the said banks under receivership was the most appropriate course of action and whether it was the board’s decision or the decision of an individual. Lastly, he sought a clarification on the remedial measures that have been put in place by the Central Bank of Kenya (CBK) with respect to Imperial Bank. There is a legal basis for placing a bank under receivership by the CBK which is established under Article 231 of the Constitution and also anchored in the CBK Act. One of the principle objects of the CBK, as captured in Section 42, is to ensure liquidity, solvency and proper functioning of a stable market-based financial system, which is further elaborated in the Banking Act. Section 34 of the Banking Act sets out the circumstances under which the CBK may intervene in the management of a bank. The circumstances are:- The electronic version of the Senate Hansard Report is for information purposes only. A certified version of this Report can be obtained from the Hansard Editor, Senate"
}