Treasury defends Mercantile Credit Bank liquidation
The Secretary to the Treasury, Ramathan Goobi, has defended the Bank of Uganda's decision to liquidate Mercantile Credit Bank, stating that it is by the law. He mentioned that existing regulations serve as special safety nets for a healthy financial system, aimed at mitigating risks in the sector. We also spoke with the Executive Director of the Uganda Bankers Association, Wilbrod Owor, on the matter. He attributed the closure of some small players to the pressures of expanding corporate demand and the slow adoption of new technology by some players. Tough regulatory requirements have led to some smaller banks being downgraded to tier II credit institutions and others folding.
