Reuters | Uganda’s Crane Bank Assets, Liabilities Transferred to DFCU – Central Bank
Reuters — Jan 27 The assets and liabilities of Uganda’s Crane Bank, which was put into receivership, have been transferred to dfcu, another mid-tier institution, the central bank said on Friday.
The Bank of Uganda said in October it had taken management control of Crane Bank because it lacked sufficient capital and posed a systemic risk to the financial system.
Bank of Uganda Governor Emmanuel Tumusiime-Mutebile told a news conference an external auditor found Crane Bank’s liabilities exceeded assets, rendering it insolvent.
“Bank of Uganda has now transferred the liabilities, including the deposits, of Crane Bank to dfcu Bank Limited and in consideration of that transfer of liabilities has conveyed to dfcu Bank, Crane Bank’s assets,” he said in a statement.
dfcu Bank reported profit before tax of 46.92 billion shillings for 2015 and total assets of 1.651 trillion shillings ($460.53 million) at the end of 2015.
The bank, which was listed in 2004, says its core businesses are consumer banking, development and institutional financing and treasury.
Crane Bank, set up in 1995, offered corporate and retail services, with a focus on micro, small and medium-sized businesses. Its 2015 report said the bank was controlled by businessman Sudhir Ruparelia, who had 48.67 percent of voting rights. Forbes listed him as one of Africa’s 50 richest men.
See full statement from the Bank of Uganda website below. https://www.bou.or.ug/bou/bou-downloads/press_releases/2017/Jan/DFCU-Bank-Limited-takes-over-Crane-bank-Limited.pdf
($1 = 3,585.0000 Ugandan shillings)
(Reporting by Elias Biryabarema; writing by Edmund Blair; editing by Susan Thomas)