By Kiyimba Bruno

Speaking to the media at Bank of Uganda,Emmanuel Mutebile the current governor of Bank of Uganda said that Crane Bank is under-capitalised and poses systemic risk to the banking sector. However, Mr Mutebile noted that the bank remains open to customers under the management of Bank of Uganda.

Mutebile continued

“Crane Bank has been on the BOU watch list since September 2015 after regular onsite tests and external audit report. Crane Bank capital had fallen below the 50 per cent legal requirement under the law,”

Crane Bank is the third largest bank in Ugandain mutebilles view. It should further noted that BOU is to conduct an audit on Crane Bank to determine whether the high non-performing loans (NPLs) and bad debts contributed to the capital erosion.

When we talked to some of the crane bankers, Nimrod who didn’t want to disclose his second name says that this has helped the local people who did not know whether they are still safe or not with their money. He credited BOU for opening their eyes.

Below is a press release from Bank of Uganda on Crane bank takeover