Uganda’s cen­tral bank takes con­trol of the third largest lender

The Star (Kenya) - - News -

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.

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