By Najibu Mulema
The deteriorating banking sector has begun to worry local traders.
This comes after, the governor of Bank of Uganda(BoU),Prof. Emmanuel Mutebile revealing that two more banks are being closely watched days after Crane Bank limited takeover due to inadequate capitalisation.The central bank alleged that crane bank was below the liquidation security of shs 25 billion in the Central bank which could allow it to operate.
The chairman of Kampala City Traders Association(KACITA),Everest Kayondo says many traders had staked their property including land titles as security for loans on personal arrangements with the proprietor Sudhir Ruparelia making it difficult to recover them under this new management.He explains that many traders are now rushing to withdraw their money from the bank which is likely to affect their financial status.
“Given the fact that this is one of the banks and it had some other branches all over the country, we borrowed from them and it was holding so many land titles of the borrowers,it becomes a real threat and the problem has to be addressed as the management is now under the Bank of Uganda.” Said Kayondo.