Global Trust Bank shut down
Posted Friday, July 25 2014 at 14:46
Bank of Uganda, with immediate effect has revoked the licence of Global Trust Bank Uganda. This was in exercise of its powers as a liquidator.
Bank of Uganda governor Tumusiime Mutebile while in a press briefing on Friday afternoon confirmed that Global Trust Bank has failed to become commercially viable, accumulating losses up to shs 60bn.
"There were seriously deficiencies in the governance of Global Trust Bank and accuracy of the information provided to government" Mutebile said.
"The closure was necessary to protect the interests of it's depositors" He added
Global Trust bank had a deposit share of 0.5%. Hence no danger of adverse effects on the rest of the banking industry, neither does its closure have any effect on the financial sector due to its low market share.
What it means for the clients
BOU has further concluded a purchase and assumption of Global Trust Bank with dfcu Bank Ltd.
dfcu Bank Ltd has thus taken over all the deposits of Global Trust Bank in full hence depositors can access deposits and accounts from any dfcu branch
All former Global Trust Bank borrowers must continue to service their loan obligations with dfcu Bank Ltd.
What it means for the workers
Employment contracts of all Global Trust Bank staff will be terminated while all assets not acquired by dfcu Bank will be liquidated.