Regulatory Alerts2023-01-01
Financial Institutions Liquidity Regulations, 2023
The Central Bank of Uganda has issued the Financial Institutions Liquidity Regulations, 2023 to mandate licensed financial institutions maintain prescribed liquidity coverage and net stable funding ratios while establishing comprehensive risk management frameworks. The regulations require weekly computation of key liquidity metrics, quarterly public disclosures, and periodic stress testing to ensure institutions can withstand market shocks and meet obligations during normal and stressed conditions. Non-compliant entities face civil penalties for liquidity buffer deficiencies, mandatory corrective plans within five days, and potential administrative sanctions such as dividend restrictions or operational prohibitions.
Share