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Mutebile says BoU had no choice but takeover Crane Bank


Mutebile says BoU had no choice but takeover Crane Bank

BoU Governor Tumusiime Mutebile and Prime Minister Dr. Ruhakana Rugunda at the UBA Annual Bankers Conference

Bank of Uganda Governor Emmanuel Tumusiime Mutebile has defended his action in taking over Crane Bank in 2016, saying it was hugely insolvent but also that its woes were created by the very people who wanted to see it rehabilitated.

Mutebile made the remarks today at the Uganda Bankers Association Annual Bankers Conference held at Serena Kampala Hotel.

Mutebile said: “After the BoU had intervened in Crane Bank and taken it over in October 2016, an inventory of its assets and liabilities was commissioned and carried out by a reputable accounting firm. This inventory found that Crane Bank was massively insolvent, with core capital of negative UGX.240 billion, as a result of mismanagement and fraud. The notion that this bank could have been rehabilitated by its owners- the same people who were responsible for its failure – if only the
BoU had provided more liquidity support and allowed the owners to remain in control, is not tenable.”

Mutebile’s revelation is the first major speech on why the central bank refused to recapitalise the third biggest bank at the moment and simply chose to sell it to DFCU.

Below is Mutebile’s Speech in FULL



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