BOU Declares Mercantile Credit Bank Liquidated, Ordered To Wind Up Operations.

Bank Of Uganda (BOU in exercising its powers under section 99 and 17 (b and (f  of the Financial Institutions Act, 2024 has laced Mercantile Credit Bank limited under liquidation, revoved  its license and ordered to wind up its operations.

In a letter signed by the Deputy Governor bank of Uganda Micheal Atingi-Ego indicated that, the action is necessary because the bank of Uganda has determined that the contibution of Mercantile Credit Bank limited's actibvities is detrimental to the interests of its depostors due to the institution's failure to resolve its signicant undercapitalization, poor corporance and insolvency.

''The BOU and the Deposit Protection Fund DPF will shortly inform all depositors of the arrangements that will will be put in place to enablethem to access the insured portion of their deposits. The uninsured portion ot te deposits will be handled in accordance with section 15 of the Financial Institutions Act 2024 as amended''. The statment reads in part.

The statment also indicated that all creditors are requested to submit their claims to the Office of the Director, Financial Stability Bank of Uganda with in 30days from the date of this statment.

However, all borrowers of this bank are directed to continue servicing their loans by making payments at the Bank of Uganda and its branches as shall be advised.

Any person possessing the property of Mercantile Credit Bank limited should deliver it to the director Financial Stability Bank of Uganda.