BoU fails to justify Crane Bank Closure

By Moses Kyeyune.

Officials from the Central Bank have this afternoon failed to justify claims of under capitalization that led to the closure of Crane Bank.

The officials led by the governor Prof Emmanuel Tumusiime Mutebile has been appearing before parliament’s committee on Commissions Statutory Authorities and State Enterprises as part of the ongoing inquiry into the alleged illegal closure of seven commercial banks.

The inquiry has now reached Crane Bank which was closed in October 2016, on grounds that it was heavily indebted and performing below minimum capital requirement, with a negative of 239.5 billion shillings.

The committee chaired by Bugweri County MP Abdu Katuntu has tasked the former executive director for Commercial Supervision Justine Bagyenda and Ben Sekabira, the director financial markets to state the minimum capital threshold, all in vain.

Former Crane Bank managers are already in court, challenging the manner in which their institution was placed under liquidations.

Related Stories…………

Governor BOU Mutebile “i will never dream to re-open closed banks”