Bank of Uganda has taken over the management of Crane Bank Limited, Emmanuel Tumusiime-Mutebile, Governor Bank of Uganda, told the press on Thursday.
“Bank of Uganda has effective today, 20th October 2016, taken over the management of Crane Bank Limited,” Mutebile said.
“This action has been taken upon a determination by the Bank of Uganda that Crane Bank Limited is a significantly undercapitalised institution as defined by law, poses a systematic risk to the stability of the financial system and that the continuation of Crane Bank’s activities in its current form is detrimental to the interests of depositors.”
The governor said the central bank has appointed a statutory manager of the affairs of Crane Bank Limited, and suspended the bank’s board of directors.
The bank will remain open and operations will continue normally but under the management and control of Bank of Uganda, Mutebile said.
“Bank of Uganda further reassures the public that it will continue to protect depositor’s interests and maintain the stability of the financial sector.”
A letter from the governor, dated October 20 2016, sent to the Acting Managing Director of Crane Bank, says “you are accordingly suspended from your position as Acting Managing Director and you are required to make a formal handover of your responsibilities to the Bank of Uganda Statutory Manager, Mr Edward Katimbo Mugwanya.” The Acting Managing Director will stay on as principal support.