CBK should clarify on the issues facing First Community Bank. I have received reliable information that depositors are struggling to access their cash.
It is claimed that sometime back someone started malicious rumours on social media about the bank which lend to a run on deposits. These allegations can be confirmed from a press release appearing on the Bank’s social media account.
First Community Bank has dismissed as “rumours” viral reports circulating on social media that the institution is facing imminent closure.
In a statement, Chief Executive Officer Dr. Hussein Hassan reiterated the bank’s commitment to continue serving its customers.
“Our attention is drawn to rumors that have been circulating in the social media on the position of the Bank, believed to have originated from malicious sources, causing concern and panic withdrawals that have affected operations in the past few weeks,” he said.
“Be assured that the bank is strong as evidenced by its performance and financial position. We re-assure all our customers and the general public that their deposits remain safe.”
Banks lend out deposits and if a bank run happens where many depositors come for their money at the same time, the bank can’t meet all those demands.
If indeed the bank is sound, then it should be given liquidity support. CBK should reassure the depositors on the safety of their deposits. If the bank has other issues, the regulator has a duty to take the necessary measures to protect the depositors.
Being unable to access your deposits in the bank is one of the worst things to happen to someone. The attendant disruption and stress is unimaginable. The issue should be dealt with expeditiously and professionally.
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