Uganda Central Bank takes over Global Trust Bank

The central bank governor said on Friday that the move would have little impact on the industry because the bank that began operations in 2008 controlled just 0.5 per cent of banking industry deposits. “The reason for the closure is that the bank has failed to become commercially viable,” the governor of the Bank of Uganda, Emmanuel Tumusiime-Mutebile, said in a statement.
He said GTB had incurred persistent losses that had accumulated to 60 billion Ugandan shillings ($22.83 million). “There is no realistic prospect that it will ever become profitable in the future,” he added. Deposits held with GTB, worth about Sh2.4 billion (Ush73 billion), were transferred to DFCU Bank, which would honour cheques drawn on depositor accounts with sufficient funds, the governor said. According to its website, as of September 30, last year, GTB had a capital base of Sh2.3 billion (Ush69.55 billion) and an asset base of Sh3.3 billion (Ush97.98 billion).