The Bank of Uganda governor Emmanuel Mutebire Tumusiime has this morning announced a takeover of limping Crane Bank by DFCU.
The announcement was made following the takeover of the financially crippled Crane Bank by BOU in September last year.
Mutebire told the press that Crane Bank has been conducting banking business but under management and control of BOU.
Subsequently, BoU as required by law, appointed an independent external Auditor to take an inventory of assets and liabilities if Crane Bank, which exercise confirmed Crane Bank liabilities as at the 20.9.16 being the date of takeover, grossly exceeded its assets and that it was insolvent.
In exercise of its powers as Receiver, under Sec 95(1) (b) of FIA, BoU has now transferred the liabilities including deposits of CB to DFCU Bank and in consideration of that transfer of liabilities has conveyed to DFCU bank, Crane Bank's assets.
The Governor said all customers and depositors of Crane Bank shall now have their accounts operated by DFCU Bank through its wide Branch network.
“BoU congratulates DFCU Bank upon this significant milestone that will certainly make the bank's footprint wider. BoU reassures the public that it will continue to protect depositors’ interests and maintain the stability of the financial sector” the Governor said.
He also mentioned that after thorough vetting, DFCU emerged winner amongst 13 institutions that bid for CB.