Regulatory Alerts2005-01-01
Financial Institutions (Limits on Credit Concentration and Large Exposures) Regulations 2005
The Central Bank of Uganda issued these regulations to cap credit concentration and large exposures for all domestic financial institutions, thereby mitigating systemic risk from excessive lending to single borrowers or interconnected groups. The framework establishes a 25 percent limit for single-borrower advances (extendable to 50 percent if adequately secured), restricts interbank loans to 50 percent with a one-year maturity, and sets an aggregate large exposure ceiling of 800 percent of total capital. Institutions must maintain internal monitoring systems, file quarterly reports for exposures exceeding 10 percent of capital, and bring existing non-compliant facilities into alignment within a three-year transition period.
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