Bank of Uganda| Acts and Regulations (2024)

FAQs

What institutions are regulated by the Bank of Uganda? ›

Credit Institutions in Uganda – Uganda currently has 4 licensed credit institutions recognized by the Bank of Uganda as of 30 June 2022. These include BRAC Uganda Bank Ltd, Mercantile Credit Bank Limited, Yako Bank Bank Uganda Limited, and Top Finance Bank Limited.

The primary legislation regulating the banking sector in Uganda is the Financial Institutions Act, as amended. The Financial Institutions Act was enacted in 2004 to provide for the regulation, licensing, capital and operating requirements, control and discipline of banks and other financial institutions in Uganda.

The Bank's core activities are: Issuance of Uganda's national currency/legal tender, the Uganda Shilling (UGX) Regulation of money supply through Monetary Policy. Banker to the Government of Uganda.

Common bank regulations include reserve requirements, which dictate how much money banks must keep on hand; capital requirements, which dictate how much money banks can lend; and liquidity requirements, which dictate how easily banks can convert their assets into cash.

BOU has the mandate to supervise and regulate the operations of financial institutions in the country. These include Commercial Banks, Credit Institutions, Micro Finance Deposit-Taking Institutions (MDIs), and Forex Bureaux.

For the purposes of this Act, tier 4 microfinance institutions shall comprise— (a)SACCOs; (b)non deposit taking microfinance institutions; (c)self help groups; and (d)community based microfinance institutions.

Regulatory Framework: Uganda's banking sector operates under the Financial Institutions Act, which was enacted in 2004. This law governs the licensing, operational requirements, and regulation of banks and financial institutions in the country.

The Tier 4 Microfinance Institutions and Money Lenders Act 2016 was rightly enacted to provide in part for the management and Control of Money Lending Businesses. The Act repealed the Money Lenders Act Cap 273, which required moneylenders to apply for a Money Lending License from the Chief Magistrate's court.

Organization. The board of directors of the Bank of Uganda is the bank's supreme policy making body. It is chaired by the governor or, in his or her absence, by the deputy governor. The duties and powers of the board are specified by the Bank of Uganda Act.

What are the objectives of Bank of Uganda? ›

Bank of Uganda (BoU) is the Central Bank of the Republic of Uganda. The primary purpose of the Bank is to foster price stability and a sound financial system.

Location of Bank of Uganda

The Bank has 9 branches headed by Branch Managers in Kampala, Jinja, Mbale, Gulu, Mbarara, Kabale, Fort Portal , Arua and Masaka towns.

Rules are specific guidelines or instructions created by an organization or authority to regulate behavior and activities. Regulations are official rules and directives established by the government or regulatory body, typically with legal binding, to govern specific sectors or industries. Origin.

Banking regulatory compliance refers to the policies and procedures that financial institutions implement to adhere to financial industry standards of conduct. Standards are set by government agencies and other regulatory bodies to maintain the stability of national and global financial systems.

Final answer: Banking regulations prohibit activities such as money laundering and freezing assets, ensuring the integrity of the banking industry.

Section 5 of the Act gives powers to Bank of Uganda to regulate, supervise and oversee operations of payment systems and this has by advertence, opened up previously over regulated sectors such as banking.

UMRA | Uganda Microfinance Regulatory Authority – "We Guide, You Prosper"