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 last Thursday.
This is the second bank, after Imperial Bank Uganda, which has since been sold, to be put under central bank in one year.
Bank of Uganda governor Emmanuel Tumusiime-Mutebile, 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 a sign the bank might be facing challenges, the BoU issued a statement last week saying messages circulating on WhatsApp that told depositors to withdraw cash from Crane Bank had not been sent by the central bank.
Crane Bank reported a consolidated pre-tax loss of 7.353 billion shillings ($2.14 million) in 2015 compared to a 57.066 billion shillings profit in 2014, after reporting a rise in expenses and impairment losses on loans and advances.