Bank of Uganda has moved to assure customers that Crane Bank will not collapse in spite of its current challenges.
BoU took over the management of Crane Bank on Oct 20 citing under-capitalization.
Speaking during the Annual Bankers Dinner in Kampala, BoU Governor Emmanuel Tumusiime-Mutebile (Pictured) said that it was because of the high Non Performing Loans at Crane Bank that prompted their intervention.
“The cause of Crane Bank’s distress was actually NPLs, which had risen to more than 20 % of its loan portfolio and which left it significantly undercapitalized,” Mutebile said.
He added: “Because it is a systemically important bank, we intend to resolve Crane Bank in a manner which preserves its core functions and services to customer… So, those of our people who claim that the bank has collapsed are fools. The bank is alive and well, if not kicking.”
Prior to BoU intervention, Crane Bank’s NPL’s had grown to more than Shs145billion