Dfcu takes over Crane bank Rwanda
KIGALI, RWANDADfcu Bank is expected to take over management of Crane Bank Rwanda (CBR) following its highly publicized acquisition of Crane’s parent bank in Uganda, a fortnight ago. The merger ostensibly hands Dfcu Bank an unexpected opportunity to venture into the Rwanda market on a silver platter – without the usual investor ado. National Bank of Rwanda Governor, Mr. John Rwangombwa, confirmed last week the new investor would take over CBR operations, considering it was a full subsidiary Crane Bank Uganda, with 100% ownership. The deal allowed dfcu Bank to acquire some of the assets and cherry pick some of the liabilities of Crane Bank. “By extension, dfcu become owners of Crane Bank Rwanda. We have established dialogue with dfcu, we want to see what their plans will be for Crane Bank Rwanda. Currently it’s still operating as crane bank Rwanda,” Mr. Rwangombwa said in an interview with this publication. “We will discuss and see if they intend to continue with the current operations or if they have other plans in Rwanda,” he added. CBR was licensed as a commercial bank in Rwanda in 2014 and began operations with full unrestricted banking operator’s license. “We expect that within one month we should have agreed with dfcu, on what they intend to do, whether it changes its name to dfcu and continue operating or if they have other strategies,” Rwangombwa said. A source at one of the branches in Kigali however disclosed the new owners were already planning to rebrand the bank DFCU Bank was established in 1964 as the Development Finance Company of Uganda, under a joint venture between UK’S Commonwealth Development Corporation (CDC) and the Uganda Government. Later, restructuring brought in DEG (of Germany) and International Finance Corporation (IFC) as equal partners with CDC and UDC, each having a 25% stake in the company. Its objective was to support longterm development projects whose financing needs and risk did not appeal to the then existing financial commercial lending institutions. Last month, Dfcu took over the operations of Crane Bank Uganda, which had been under statutory management of Uganda’s Central Bank, reportedly owing to liabilities exceeded its assets. The acquisition included all customer deposit accounts and loan accounts. At the annual Monitory Policy and Financial Stability statement presentation last week, Rwangombwa said the banking sector in Rwanda holds around 66.9% of the total financial sector assets.
The deal allowed dfcu Bank to acquire some of the assets and cherry pick some of the liabilities of Crane Bank.