Bank of Uganda [BOU] has come out to refute messages circulating on Whatsapp instructing depositors to withdraw their money from Crane Bank.
The viral WhatsApp messages indicate that BOU issued the directive. The commercial banks’ regulator has issued a statement in this regard.
“It has been brought to our attention that messages have been circulating on Whatsapp instructing depositors to withdraw their money from Crane Bank within the next week. We wish to categorically state that these messages were not issued by Bank of Uganda.
The shareholders of commercial banks have the option of selling shares to new investors as they deem appropriate. However, any new investor in a commercial bank must satisfy the regulator that they are fit and proper. The BoU does not comment on any negotiations to sell shares in a bank while these negotiations are ongoing.
However, any new investor in a commercial bank must satisfy the regulator that they are fit and proper. The BoU does not comment on any negotiations to sell shares in a bank while these negotiations are ongoing.
BoU monitors closely all commercial banks in Uganda and any actions which it takes are motivated primarily by the objective of protecting the best interests of banks’ depositors,” part of the statement read.
Many university students across Uganda save and pay their tuition fees through Crane Bank.
Crane Bank 2015- Key Performance Indicators
• At an asset base of Shs1.79 trillion (December 2015), Crane Bank is the 4th biggest bank, controlling 4% market share.
• Although the bank made a loss of Shs3.1 billion, the bank performed well on all other fundamentals.
• It was also the fourth biggest lender with Shs971.4 billion in loans and controlling 9.24% of the credit market.
• The Bank grew its deposits by 5.45 per cent to UGX 1,336,606 million acquiring approximately 61,000 new accounts. The Bank, as of December 2015, audited accounts, was the fifth biggest in customer deposits, controlling 8.5% market share.
• Robust income performance. Net Operating income, grew by 4.3 per cent reflecting strong revenue growth. Interest income grew by 9.4 per cent driven by increase in Loans and Advances.
• Robust capital ratios. Capital adequacy stands at 16.41 per cent and Core capital ratio stands at 15.74 per cent. Crane Banks paid up capital stands at UGX 210 billion as against the BOU requirements of UGX 25 billion.
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