The Bank of Uganda has with effect from today taken over management of Crane Bank Limited.
According to a statement, the action has been taken upon the determination by the Bank of Uganda that Crane Bank Limited is significantly under-capitalised.
BOU has appointed a statutory manager, Edward Katimbo Mugwanya, to run the bank and suspended the board of directors of the bank.
In a statement (below) signed by governor Tumusiime Mutebile, BOU said Crane bank poses a systemic risk to the stability of the financial system and the continuation of the bank’s activities in its current form is detrimental to the interests of its depositors.
“BOU assures the public that Crane Bank Ltd will remain open and its operations will continue normally, but under the management and control of Bank of Uganda.”
Social media was last week awash with stories of trouble at Crane Bank. The stories mentioned a take-over.
Christine Alupo, Director Communications said the messages that were circulating on Whatsapp instructing depositors to withdraw their money from Crane Bank were not issued by BOU.
“The shareholders of commercial banks have the option of selling shares to new investors as they deem appropriate. However, any new investor in a commercial bank must satisfy the regulator that they are fit and proper. The BOU does not comment on any negotiations to sell shares in a bank while these negotiations are ongoing,” Alupo had said last week.
Alupo went on to add that they closely monitor all commercial banks in Uganda and any actions which they take, if any, are motivated primarily by the objective of protecting the best interests of banks’ depositors.