Kampala
In a move to protect depositors’ interests, the Bank of Uganda (BoU) has placed Mercantile Credit Bank Limited under liquidation, revoked its license, and ordered the winding up of its affairs, effective June 18, 2024.
The central bank cited the bank’s significant undercapitalization, poor corporate governance, and insolvency as reasons for the takeover. The BoU and the Deposit Protection Fund of Uganda (DPF) will inform depositors about arrangements to access their insured deposits shortly.
Deputy governor BoU Ego Atingi said uninsured deposits will be handled in accordance with the Financial Institutions Act, 2004, as amended. Creditors have 30 days to submit their claims to the Bank of Uganda, while borrowers must continue servicing their loans at designated Bank of Uganda offices.
The Bank of Uganda has urged anyone with property belonging to Mercantile Credit Bank Limited to surrender it to the Director, Financial Stability. Inquiries can be directed to the Bank of Uganda.
This move aims to safeguard the interests of depositors and maintain stability in the banking sector. The Bank of Uganda remains committed to ensuring the smooth operation of financial institutions in Uganda.
