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.