Financial Crisis Management
Financial Stability
One of the lessons learned from the global financial crisis was that crisis management frameworks in many countries are inadequate for dealing with systemic financial crises, and that financial regulators need proper tools to resolve failing banks and other systemic financial institutions in an orderly manner, without unnecessarily exposing taxpayers to risk of loss and causing wider economic damage.
Financial Crisis Management at Bank of Uganda
One of the lessons learned from the global financial crisis was that crisis management frameworks in many countries are inadequate for dealing with systemic financial crises, and that financial regulators need proper tools to resolve failing banks and other systemic financial institutions in an orderly manner, without unnecessarily exposing taxpayers to risk of loss and causing wider economic damage. As such, the BOU is working with the other financial sector regulators in Uganda such as Capital Markets Authority, Insurance Regulatory Authority and, Uganda Retirement Benefits Regulatory Authority, and the Ministry of Finance, Planning and Economic Development to put in place a crisis resolution framework.
Following the lessons learnt from the financial crisis resolution exercises, BOU is taking measures to enhance its financial sector crisis management framework, in six key areas:
a) Exceptional liquidity assistance (ELA) policies and procedures
b) Enforcement and corrective actions
c) Robust bank resolution
d) Deposit protection scheme
e) Interagency coordination
