In a disguised acknowledgment of turbulence in Crane Bank, the Bank of Uganda has today assured Ugandans that they will take all measures to ensure customers’ savings are safeguarded.
Addressing the media in Kampala, Governor Emmanuel Tumusiime-Mutebile said although he doesn’t like talking about situations of individual banks, nonetheless the central bank will ensure Crane Bank customers’ savings are protected.
The Governor also said the central bank will ensure that the entire financial system is sound.
Mutebile, however, could not reveal much on the real state of Crane Bank, especially whether or not it could be on the verge of collapse; and if it did what would be the next steps.
The BoU Executive Director for Supervision, Justine Bagyenda, said the world over bank mergers and consolidations take place because of the benefits they bring like economies of scale, capitalisation and harnessing of resources.
Crane Bank, one of a few indigenous Ugandan banks, has been in the news with speculation rife that it could collapse anytime.
Speculation started when it emerged that the bank’s shareholders are looking for what they call “a strategic partner” to acquire private equity in the bank. This after the bank abandoned a move to list on the Ugandan stock market.
Ever since the bank’s situation has been shrouded in all sorts of conspiracy theories on what could be troubling the bank.
The Bank of Uganda has repeatedly said there is no cause for alarm, stating that mergers in the financial sector are common. The central bank has also stated that it will ensure any merger, if at all, is in line with the law.
Lately, the rumours on Crane Bank have escalated with many customers rushing to withdraw their savings. Customers have formed long queues in literally all branches and are mainly withdrawing their deposits.
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