Bank of Uganda has confirmed the takeover of Crane Bank by DFCU Bank.
In a statement issued Friday, the BoU said it had exercised its powers as receiver under section 95(1) (b) of the FIA and transferred the liabilities (including deposits) of Crane Bank to DFCU Bank Limited (‘DFCU Bank’) and in consideration of that transfer of liabilities has conveyed to DFCU Bank, Crane Banks assets.
The news was welcomed with excitement from DFCU Bank, which issued a statement minutes later announcing to their clients the takeover of Crane Bank.
“Growing bigger and better; DFCU Bank has acquired all Crane Bank assets and assumed all liabilities. To all customers, both new and old, we look forward to serving you…with pleasure,” reads a statement by DFCU.
It will be recalled that on October 20, 2016, Bank of Uganda took over the management of Crane Bank and issued a notice to the public, setting out the reasons for the takeover. Since then, Crane Bank has been conducting banking business but under the management and control of Bank of Uganda.
Subsequent to the takeover, Bank of Uganda, as required by law, appointed an independent external auditor to make an inventory of the assets and liabilities of Crane Bank exercise confirmed that Crane Bank’s liabilities, as at 20th October 2016, being the date of takeover, grossly exceeded its assets and that it was insolvent, which insolvency has continued to date.
On January 24, 2017, BoU progressed Crane Bank from statutory management to receivership, with the central bank as Receiver.
“All customers and depositors of Crane Bank shall now have their accounts operated by DFCU Bank through its wide branch network, which will now include some of which were formerly branches of Crane Bank. Bank of Uganda congratulates DFCU Bank upon this significant milestone that will certainly make the bank’s footprint wider,” reads a statement by Bank of Uganda.