{UAH} Ugandan regulator steps into Imperial

Ugandan regulator steps into Imperial

KAMPALA, Uganda - The Bank of Uganda last week announced that it had took over full operations of a Kenya subsidiary in Uganda, Imperial Bank Uganda Limited writes PAUL TENTENA.

Emmanuel Tumusiime Mutebile, the BoU governor told reporters that "Under Section 88 and 89 of the Financial Institutions Act 2004, the Bank of Uganda has effective Tuesday October 13, 2015, taken over the management of Imperial Bank Uganda Ltd."

He said the decision was taken following the suspension by the Central Bank of Kenya (CBK) of the operations of Imperial Bank Ltd. Kenya, who are the majority shareholder of Imperial Bank Uganda Ltd.

"The main purpose of the decision to take over the management of Imperial Bank Uganda is to safeguard the interests of the Bank's customers in Uganda. This is a temporary statutory measure to allow for seamless operations as the affairs of the majority shareholder in Kenya are resolved," said Mutebile.

The taking over of Imperial Bank, is not the first time BoU has taken over management of a foreign bank. In 2011, at the peak of the late Libyan President Col. Muammar Gadhafi ouster, the Central Bank took over management of Tropical Bank Uganda Ltd, a fully owned Libyan government bank under the Libyan Investment Portfolio (LAIP) by then.

Since then, about four banks have been closed or merged with the latest being the National Bank of Commerce whose management was given to Crane Bank. Nigerian bank, Global Trust Bank, Uganda Ltd was also closed.

Sources have it that the taking over of Imperial Bank emanated from the bank's failure to have the mandatory Ush25b capitalization required by the BoU.

Meanwhile, another Kenyan subsidiary Uchumi Supermarket Ltd faced tough times in the week following the closure of Natete and Kabalagala outlets on Kampala outskirts for renovation, without fully paying off their creditors and employees.

By Paul Tentena, Monday, October 19th, 2015

___________________________________

Gwokto La'Kitgum

"Even a small dog can piss on a tall Building", Jim Hightower

"But this I know, UPC believed and still believes in

very high education. We can call Obote all bad names we have, but the bottom line remains that he got more scholarships for Buganda than all previous Uganda leaders combined. That includes Sir Edward Mutesa, President Lule, President Binayisa, up to and into Ssabasajja Mutebi. Who all happen to be Baganda leaders." Mulindwa

--
Disclaimer:Everyone posting to this Forum bears the sole responsibility for any legal consequences of his or her postings, and hence statements and facts must be presented responsibly. Your continued membership signifies that you agree to this disclaimer and pledge to abide by our Rules and Guidelines.To unsubscribe from this group, send email to: ugandans-at-heart+unsubscribe@googlegroups.com