Prior to 2017 and for a long time, everyone knew Bank of Uganda Governor, Prof. Emmanuel Tumusiime Mutebile as a no-nonsense man. The tough-talking Mutebile, together with her iron-lady Executive Director Bank Supervision, Justine Bagyenda had what seemed like a good game going on. So infallible was Bank of Uganda at the time that when it closed National Bank of Commerce on 27th September 2012 and Global Trust Bank on 25th July 2014 the unknowing public was in deep support. Then on 20th October 2016, BoU placed Crane Bank, the third-largest bank at the time under statutory management, then went…
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Attempts by Bank of Uganda to liquidate Crane Bank are illegal and could cost taxpayers more money, should it go ahead, several lawyers that CEO East Africa magazine has spoken to have said. Yesterday, the Central Bank put an announcement on its social media channels, purporting to place Crane Bank under liquidation. “Bank of Uganda (BoU) took over management of Crane Bank Ltd (CBL) on October 20, 2016 and subsequently progressed it into receivership on January 24, 2017. In exercise of its powers under section 99 (1) & (2) of the Financial Institutions Act, 2004, BoU has now placed CBL…
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Professor Emmanuel Tumusiime Mutebile, the Governor, Bank of Uganda has unequivocally said that foreign financial institutions that do not use locally-raised deposits to lend to Ugandan entities do not require the authorisation of the central bank to be able to lend locally. Although he did not directly refer to the ongoing Hamis Kiggundu vs. DTB Uganda and DTB Kenya, the Governor, was obviously referring to the recent controversial Commercial Ruling by Justice Henry Peter Adonyo in which he ruled that DTB Kenya had flouted the Financial Institutions Act 2004 when it lent USD4.5 million to businessman Hamis Kiggundu of Ham…
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Bank of Uganda Governor Emmanuel Tumusiime-Mutebile has warned commercial banks that the central bank may be forced to impose limits on interest rates they can charge on loans.Mutebile, who appears to make a U-turn from an earlier position that bank can charge borrowers based on their assessments, says he was disappointed that banks had refused to reduce charges on loans to spur growth.This is contained on July 7, 2020 letter to executive directors of commercial banks. Mutebile said: “The Bank [of Uganda] may, in consultation with the minister, by statutory instrument, prescribe – the maximum and minimum rates of interest and…
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The Governor of Bank of Uganda, Professor Emmanuel Tumusiime Mutebile, has today threatened to take retaliatory statutory action on the banking industry over its reluctance to cut interest rates in line with BoU’s cuts on the Central Bank Rate. Since the year began, BoU has cut its benchmark lending rate from 9 percent to a historic low of 7 percent in June. Nonetheless, banks have been reluctant to follow cue. Comparatively average lending rates have fallen by 2.15 percentage points from 19.88 percent at the beginning of the year to just 17.73 percent in April 2020. However in May 2020,…
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Bank of Uganda has today, for the second time in three months, further eased down the Central Bank Rate for June 2020 to 7 per cent, setting another record low since the CBR was introduced as a Monetary Policy tool in July 2011. In April 2020, at the onset of the Covid-19 pandemic, BoU fixed the benchmark rate at 8% and kept it at 8% for May as well. Announcing the policy rate cut today, Bank of Uganda Governor, Professor Emmanuel Tumusiime Mutebile said that given the fact that the impact of Covid-19 is likely to linger on much…
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The majority of the senior staff members interviewed by the committee said there were factions or cliques in the Bank polarized around the positions of the Governor and the Deputy Governor. A committee appointed by President Yoweri Museveni to study several complaints made to the Inspectorate of Government and Parliament about Bank of Uganda, has recommended “urgent and comprehensive review” of what it believes is an archaic “legal regime governing the Bank of Uganda.” “The Bank of Uganda Act Cap 51 was last amended in 1993, two years before the promulgation of the 1995 Constitution of Uganda. In the case…
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Oberthur Fiduciaire, the French currency printer contracted by BoU to print and deliver an unspecified amount of Uganda Shilling banknotes to Uganda, has denied any wrong in the ongoing scandal…
In what is perhaps Bank of Uganda’s first response to parliament’s Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) report that implicated the central Bank and several of its…
As Parliament’s COSASE committee starts probing Bank of Uganda over the way it handled the statutory seizure and or subsequent disposal of the assets and liabilities of seven defunct banks,…
