BOU asked to stop increasing minimum capital requirements for Financial Institutions

City Lawyer Hassan Male Mabirizi Kiwanuka has written to Finance Minister with a copy to Bank of Uganda & Uganda Bankers Association Objecting to what he has termed as the Irrational  increase in minimum capital requirements for Financial Institutions for up to over 1000%.

In his letter dated  26th August 2921, Mabirizi cites lack of public participation of the relevant authorities and further accuses Bank of Uganda of wanting to copy from regional countries without considering the peculiar circumstances of Uganda.

Mabirizi is accussing Bank of Ugand of solely reliying on already registered Institutions which may not want new competitors instead of the general public who may want to start financial institutions.He has asked the minister not to sign any instrument to that effect.

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Mabirizi adds that Bank of Uganda is  further confused by regional comparisons, yet Uganda has a unique economy which expelled foreign investors in 1972, experienced several wars among other challenges.

according to Mabirizi,  the Economy is just recovering from two Lockdowns,  and that it would by unfair to increase the minimum Capital requirements for banks to run their business. 

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