Uganda’s central bank takes control of the third largest lender
The Bank of Uganda has taken management control of Crane Bank because it lacked sufficient capital and posed a systemic risk to the financial system, the central bank said yesterday. Bank of Uganda governor Emmanuel TumusiimeMutebile, who called Crane Bank the country’s third largest, told a news conference the bank would remain open and operate normally. “Bank of Uganda further reassures the public that it will continue to protect depositors’ interests and maintain the stability of the financial sector,” he said in his statement. In a sign the bank might be facing challenges, the Bank of Uganda issued a statement on Wednesday saying messages circulating on Whatsapp that told depositors to withdraw cash from Crane Bank had not been sent by the central bank. Crane Bank, set up in 1995, reported a consolidated pre-tax loss of USh7.353 billion (about Sh215.13 million or $2.14 million) in 2015 compared to USh57.066 billion (about Sh1.67 billion) profit in 2014, after reporting a rise in expenses and impairment losses on loans and advances.