Banking sector is safe and profitable - Mutebile

Bank of Uganda (BoU) has clarified in a statement, that the banking sector is robust and profitable despite rumours to the contrary.

Since management of Crane Bank was taken over by the Central Bank on last Thursday, rumours have been rife that more banks are likely to be taken over. 

In a statement, Prof Emmanuel Tumusiime-Mutebile said: "There has been negative reporting on the banking sector recently. The negative news and reports are unfortunate and utter rubbish."

"Take this as a categorical dismissal of these rumours. Uganda's banking sector is stable, sound and profitable. In spite of the fact that the Bank of Uganda took over the management of Crane Bank, the bank will not be closed, but we are seeking new investors who can boost the capital base" he added. 

Mutebile explained that there is no bank in the economy that is facing imminent closure and that the banking sector is closely monitored and supervised to ensure that the financial institutions are well run and that depositors' interests are safeguarded at all times.