Uganda’s central bank said on Thursday it had taken management control of mid-tier Crane Bank because it did not have sufficient capital and posed a systemic risk to the financial system.
Bank of Uganda Governor Emmanuel Tumusiime-Mutebile also told a news conference the lender would remain open and operate normally, and the central bank would protect depositors’ money.
This is a culmination of months of Bank and forth rumours that have clouded the bank’s search for a new investor.
The Bank is owned by Sudhir Ruparelia who has been listed as EastAfrica’s richest man by Forbes and Ventures Africa and had recently engaged on an expansion programme that saw them open a branch in Rwanda, and were moving to DR congo.
The Bank has been in the process of finding an investor and is currently negotiating with Atlas Mara a company backed by Ex Barclays group CEO Bob Diamond and Ugandan Entrepreneur Ashish Thakkar.