By Lawrence Kazooba

Everyone with basic understanding of the importance of the banking sector is fearful about the future of the Ugandan economy.

With another rumour going around that Cairo International Bank and UBA are being targeted by the Central Bank for takeover like was the case with Crane Bank, doom is written all over the face of the financial sector.

Bank of Uganda Governor Tumusiime Mutebile on Wednesday dismissed reports of a troubled financial sector.

However, he said two banks are on Bank of Uganda’s “watch list”, words which give credence to media reports that two banks are targeted by Bank of Uganda.

The slip of the tongue of the governor, whether intentional or not, has created unrest among the banked Ugandans who are starting to withdraw their money from banks.

Watchdog understands that Eco Bank is another bank which has issues of capitalization. It is understood that UBA has not made profits in the last seven years.

The bank’s total assets reportedly amounted to Shs165bn in 2015 from Shs185bn in 2014.

The bank has also closed branches in many parts of Kampala.

Now, eyes are set on Mutebile if he can close four banks in such a short period.

 

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