Regulatory Alerts2005-01-01
Financial Institutions (Credit Classification and Provisioning) Regulations 2005
The Central Bank of Uganda issued these regulations to standardize the classification and provisioning of credit facilities across all domestic financial institutions. The rules mandate that institutions categorize loans into five risk tiers, apply tiered specific provisions ranging from 20 to 100 percent, and maintain a baseline one percent general provision. Financial institutions must quarterly report non-performing assets to the Central Bank and face administrative sanctions or capital adjustment requirements for non-compliance.
Share