Regulatory Alerts1997-01-01
Intervention Policy by the Government of Uganda and Bank of Uganda
The Government of Uganda and Bank of Uganda have established an intervention policy to strengthen the financial sector by extending a moratorium on new bank licenses and doubling minimum capital requirements by 1999. The policy mandates enhanced supervisory standards, limits deposit insurance coverage to 3 million Ugandan shillings per depositor, and outlines a contingent intervention plan for banks failing to meet regulatory targets. When intervention occurs, banks are closed for auditing and liquidation, with assets potentially sold as going concerns while depositors receive protected funds within 90 days and legal action targets responsible parties.
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