7 September 2017

Uganda: Failing Banks Cannot Be Guaranteed By Supervision

Kampala — The Deputy Governor Bank of Uganda Dr. Louis Kasekende has noted that even with close and strict bank supervision, it is not a guarantee that a bank cannot fail.

Kasekende said a bank can fail at any time even with strict and close supervision referring to the recently closed, merged or acquired banks in Uganda.

"The major role of bank supervision is to reduce loses not to guarantee that the bank will fail," said Kasekende during the 22nd Annual Seminar of the Institute of Certified Public Accountants of Uganda held at Imperial Resort Beach Entebbe where he was the keynote speaker.

He said banks can command trust and confidence from their depositors and struggle to raise depositors rather than wholly depending and investing in treasury bills.

Kasekende said bank failure can be stopped when the three pillars of corporate governance of bank shareholders, credible external auditors and prudential supervision by Bank of Uganda are combined together.

He asked accountants to adapt international accounting standards.

Protazio Begumisa, the President of the ICPAU said currently they have 2600 full members, 1500 associate members, over 7000 active students undergoing training in different institutions of high learning and 213 licensed accounting firms.

Uganda

Museveni Okays Construction of Hoima Oil and Gas Institute

President Museveni has offered land to Chinese investors to build an oil and gas vocational institute in Hoima… Read more »

Copyright © 2017 East African Business Week. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 900 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.