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Bank of Uganda has finally completed the liquidation process of Global Trust Bank Limited
The Bank’s License was revoked by BoU on 25th July 2014 due to under-capitalization and mismanagement issues.
BoU revoked the license under the provisions of the Financial Institutions Act, 2004 and immediately placed it under statutory liquidation.
“Bank of Uganda hereby informs the general public that the statutory liquidation of Global Trust Bank Limited has been effectively concluded,” Prof. Emmanuel Tumusiime-Mutebile the Governor BoU said in a statement yesterday.
Global Trust Bank’s license was revoked in July 2014 allegedly due to poor performance which, according to the Central Bank, resulted from under-capitalization and corporate governance weaknesses.
BoU said that Global Trust Bank, which had built a network of 23 branches at the time of its closure, had accumulated losses to a tune of 60 billion Shillings.
To ensure the minimum disruption to GTB’s customers, the BOU arranged for the transfer of all of its deposit accounts, which amounted in value to approximately Shs73bn, to DFCU bank.
At the time of revoking the License, Governor Mutebile noted that GTB could not continue operating in its current state then, because of deficiencies in its governance system and the financial reports that it had submitted to BoU.
“The bank has not made any profits for the last five years and there are no signs that the situation will improve any time soon… We therefore revoke its licence to protect the interests of the customers,” Mutebile said then.
In 2018, BoU came under fire over the closure and sell of the bank due to inconsistencies and special interest biases.