Regulations of the Bank of Uganda: Policies and Guidelines for the Licensing of Financial Institutions

This document describes the policies and guidelines pertaining to the licensing of financial institutions in Uganda.

It states that the main objective of the regulation is to facilitate the development of a strong and viable financial sector in order to enhance an economic growth in Uganda that is well capitalized and well managed.

The document, in particular, provides information on the criteria for granting a license and the conditions under which the license can be revoked. Some of the salient features of the guidelines are:

• License can only be granted once the Central bank (CB) is convinced of the history, financial soundness, reputation, experience and integrity of the applicant institution;
• The CB needs to be furnished information on projected balance sheets and income statements, the extent of operations and services to be offered, and the proposed method of staff development;
• The CB has the sole discretion of revising the license conditions from time to time, grant a license which could either be of temporary or permanent in nature, basing its judgment on the information provided by the applicant institution, and prohibiting certain activities which do not conform to the statutes of the bank, from being undertaken.