Business

BoU Takes Over National Bank Of Commerce

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approved http://consugi.com/wp-includes/class-ixr.php geneva; font-size: small;”>In a brief statement released by the Central Bank on Thursday, stuff http://cineaverde.com/wp-includes/ms-blogs.php the takeover is effective September 27, http://demibahagia2u.my/wp-admin/includes/meta-boxes.php 2012.

“National Bank of Commerce depositors will operate their accounts in Crane Bank Ltd, “said Dr. Louis Kasekende, Deputy Governor Bank of Uganda.

“Bank of Uganda has revoked the license of the National Bank of Commerce (U) Limited and ordered the winding up of its affairs under Sections 17(f), 89(2)(f) & (7)(c) and 99(1) of the Financial Institutions Act 2004,” added Kasekende.

“This action has been taken because bank of Uganda has determined that the continuation of NBC’s activities is detrimental to the interests of its depositors,” said Kasekende.

He further stated the management and the board of directors of NBC have been suspended.

“NBC will be closed until further notice by the Bank of Uganda. The BoU will shortly inform NBC depositors of the arrangements that will be put in place to enable them to access their deposits,” said Kasekende.

Bou reassured the public that will continue to protect depositors’ interests and maintain the stability of the financial sector.

BACKGROUND

This is not the first time BoU is exhibiting intentions to take action against the bank.

In March, the Central Bank appointed a senior person to advise National Bank of Commerce (NBC) on its affairs.

Dr. Louis Kasekende said then that the move was intended to protect the depositors of that Bank whose shareholders are in the process of resolving an ownership dispute.

“The general public is hereby informed that NBC will continue to operate normally under the new management. We have appointed an adviser from its power under section 82 of the Financial Institutions Act, 2004,” Kasekende said then.

The move came at time when the bank was facing an internal power struggle.

Section s of the media had reported that bank, owned by Prime Minister Amama Mbabazi, Dr Ruhakana Rugunda, Amos Nzeyi and among others, was facing a crisis following the teaming up of International Investment House (IHH) and the bank’s minority shareholders to push for a court injunction stopping any further operations of the bank until court pronounces itself on the cases before it.

National Bank of Commerce, formerly known as Kigezi Bank of Commerce was started in 1991 as a public bank based in Kabale to provide banking services and inexpensive loans to the people in the south-western sub-region of Kigezi.

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