Muriuki was addressing shareholders at the Co-op Bank Annual General Meeting held last Friday at the Bomas of Kenya in Nairobi. Co-operative Bank has assured its clients and shareholders that insider loans are being scrutinised by its board and the Central Bank to avoid abuse which has brought down some banks. He said all loans taken by directors and employees are being well-serviced, adding that there is no cause for alarm as teh bank is sound. This comes after it emerged that unsecured and poorly documented insider loans led to the loss recorded by National Bank last year and the temporary closure of Chase Bank in April. In reaction to queries from concerned shareholders on efforts being put in place to safeguard depositors' monies, Co-op Bank managing director Gideon Muriuki said the bank has put in place measures to ensure integrity in insider loan disbursements.

Source: The Star May 30, 2016 04:52 UTC