Regulatory Alerts2024-10-01
Bank of Uganda Guidelines on Liquidity Risk Management
The Bank of Uganda has issued comprehensive guidelines mandating supervised financial institutions to implement robust Internal Liquidity Adequacy Assessment Processes (ILAAP) aligned with Basel III standards. The framework requires institutions to maintain minimum Liquidity Coverage and Net Stable Funding Ratios while establishing forward-looking stress testing, diversified funding strategies, and continuous maturity mismatch monitoring. Boards must approve liquidity risk appetites and submit biennial Liquidity Adequacy Statements to ensure ongoing compliance, with supervisory evaluations integrated into the broader SREP framework.
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