The Bank of Uganda has with effect from today, 20th October 2016, taken over management of Crane Bank Limited
This is in exercise of its powers under section 87 (3) of the Financial Institutions Act 2004.
According to a notice issued by the governor Tumusiime Mutebile, the action has been taken on grounds that the bank is significantly undercapitalized as defined by law.
The notice also indicates that Crane Bank’s financial health poses systemic risk to the stability of the entire financial system.
It adds that the continuation of the activities of Crane Bank in its current form is detrimental to the interests of its depositors
Accordingly, the Central Bank has appointed a statutory manager to the affairs of Crane Bank limited and suspended its board of directors.
The governor also says they are to conduct audit on Crane Bank to determine whether the high NPLs & Bad Debts contributed to the capital erosion.
Bank of Uganda however assures the public that Crane Bank will remain open and its operations will continue.
Story By Moses Ndhaye
