Uganda’s central bank also known as Bank of Uganda (BoU) has taken management control of Crane Bank.
Addressing press on Thursday, BoU governor Emmanuel Mutebile cited insufficient capital and systemic risk to the financial system as some of the reasons behind the decision.
Mutebile, however, clarified that Crane bank will remain open and operate normally while BoU protects depositors’ money.
In a letter addressed to Crane Bank’s Ag. Managing director and dated October 20 read: “
A letter addressed to the bank’s managing director on Thursday said: “This is to inform you that Bank of Uganda has, with effect from today 20th 2016, pursuant to Sections 87 (3), 88 (1)(a) & (b) of the Financial Institutions Act 2004, taken over management of Crane Bank Ltd. 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,” read part of the statement signed by Mutebile.