Image Credit: campuseye.ug
Image Credit: campuseye.ug

According to a statement by the Central Bank of Uganda(BoU) today, has come up to categorically state that, messages circulating on WhatsApp instructing depositors to withdraw their money from Crane Bank within the next week was not issued by them.

The move by Crane Bank to sell some of its shares to an investor to raise more equity was interpreted by speculators as a move being taken by the bank to exit the market. The speculators also caused panic suggesting that the bank will steal customer deposits.

But BoU quelled the fears when it explained that shareholders of Ruparelia Group owned bank have the option of selling shares to new investors as they deem appropriate.

While BoU didn’t comment on any negotiations to sell shares in a bank, any new investor in a commercial bank must satisfy the regulator that they are fit and proper.

“As of now, the Bank of Uganda has not received any request from Crane Bank to approve a change in shareholding. Should such a request be received, the proposed share holders will be vetted for “fit and proper” credentials and positively considered if they warrant approval.” The Central bank assured the public adding that it is normal practice for financial institutions to change shareholding in line with their strategic objectives, and this has happened several times in Uganda.