Uganda’s Central
Bank plans to raise the minimum capital requirement for commercial
banks by March 2013 to boost their ability to absorb shocks and put the
country’s financial system on a par with others in the region.
Elliot Mwebya, the
Central Bank’s director of communications, said banks in East Africa’s
third largest economy would be required to increase capital bases to at
least 25 billion shillings from 4 billion shillings.
“Our principal aim
is for banks to have sufficient capital so that when they experience
external shocks, losses, or any adverse developments of whatever nature
they’re able to cope and remain strong,” he said.
