Regulatory Alerts2005-01-01
Financial Institutions (Insider Lending Limits) Regulations, 2005
The Central Bank of Uganda issued these regulations to cap and regulate credit extended by financial institutions to insiders, including directors, officers, shareholders, and their related interests. Loans must be granted on non-preferential terms, remain secured by collateral valued at least 120% of the outstanding amount, and aggregate to no more than 20 percent of core capital, with specific caps for employees and non-executive directors. Institutions must submit quarterly reports to the Central Bank, which may impose administrative sanctions such as fines, repayment orders, or director dismissal for non-compliance.
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