BoU urges banks to align with new capital rules

The Bank of Uganda (BoU) has urged commercial banks to comply with updated regulatory frameworks, particularly the revised minimum capital requirements, as part of efforts to boost financial sector stability and resilience.

The call was made by David Kalyango, BoU’s director of supervision, who represented the deputy governor during the unveiling of NCBA Bank’s new head office at Twed Towers in Kampala. In 2023, BoU raised the minimum paid-up capital for commercial banks (Tier I institutions) from Shs 25 billion to Shs 120 billion, with a further increase to Shs 150 billion required by June 30, 2024.

The cash reserve requirement was also raised from 8 per cent to 10 per cent of total deposits.

“These regulatory reforms are part of BoU’s broader strategy to enhance financial stability, strengthen risk management, and align with international standards,” Kalyango said.

He emphasized that NCBA and other institutions must continue aligning with the new frameworks to build resilience against future economic shocks. Kalyango commended NCBA’s modernization efforts, noting that the new head office signals more than a structural relocation, it reflects a deeper commitment to customer experience and high-quality service delivery.

“NCBA’s efforts to upgrade and rebrand service outlets are commendable. This new head office, located strategically in the central business district, will improve access to premium banking services for both existing and new clients,” he said.

As part of the NCBA Group, the bank is well-positioned to serve a diverse clientele, including multinational corporations, SMEs, and players in trade, agriculture, and manufacturing. Kalyango also highlighted BoU’s latest regulatory initiatives, including the Financial Institutions (Corporate Governance) Regulations 2024, Internal Liquidity Assessment Process (ILAAP) Guidelines, Cybersecurity Risk Management Guidelines, and the Environmental, Social, and Governance (ESG) Framework.

These measures, he noted, aim to improve sector soundness and regulatory compliance in an evolving financial environment. NCBA Uganda CEO Mark Muyobo said the bank’s relocation to Twed Towers, along with the refurbishment of its Nakasero Branch, represents a strong push to elevate the customer experience.

“Our new head office features state-of-the-art digital banking capabilities and a dedicated Premier Lounge for our Premier customers,” Muyobo said.

He added that NCBA plans to roll out a revamped mobile banking app and an upgraded Corporate and Investment Banking platform in 2025, in support of Uganda’s growing digital economy and customer convenience.