BOU Guidelines on Liquidity Risk Management

BANK OF UGANDA

OFFICE OF THE EXECUTIVE DIRECTOR SUPERVISION

37-45 KAMPALA ROAD, P.O.BOX 7120, KAMPALA

DIRECT LINE 256-414- 230051 GENERAL LINE 256-414- 258441

CABLES UGABANK Web site www.bou.or.ug

EDS.306.2

08th November 2024

Circular to all Chief Executives of Commercial Banks and Credit Institutions

Guidelines on Liquidity Risk Management for Supervised Financial Institutions (SFIs)

Please refer to our previous Circular dated 24th April 2024 regarding the Guidelines on Internal Liquidity Adequacy Assessment Process (ILAAP) and Liquidity Risk Measures, under the Financial (Liquidity) Regulations, 2023.

Bank of Uganda considered the comments received from the SFIs and provided feedback through a virtual meeting. Accordingly, this is to inform you of the following:

1. The new Guidelines for ILAAP and the Net Stable Funding Ratio (NSFR), as well as the revised Guideline for the Liquidity Coverage Ratio (LCR), have been completed and are hereto forwarded to you for implementation effective 01st December 2024.

2. The prudential Weekly Liquidity Risk Return has also been revised and its implementation is effective 01st December 2024. To ensure a smooth transition, SFIs are required to submit the revised return alongside the old return until 30th November 2024.

Both the Guidelines and the Return are accessible on BSA.

For any further queries, contact Mrs. Jacqueline P.N. Kigonya on jkigonya@bou.or.ug or Mr. Brian Musumba on bmusumba@bou.or.ug.

[Signature] David L. Kalyango Executive Director Supervision

Copy: Director Commercial Banking Director Non-Bank Financial Institutions Director Financial Stability

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