Financial Institutions (Capital Adequacy) Regulations No. 42
(enacted in 2005)
Financial Institutions (Capital Adequacy) Regulations No. 42 of 2005, issued by the Bank of Uganda, address the minimum capital and on-going capital requirements for financial institutions regulated under the Financial Institutions Act of 2004.
These regulations are comprised of the following sections in addition to a form based on the 1988 Basel Capital Accord:
- Part I Preliminary: defines language in this act;
- Part II Regulatory Requirements: addresses the minimum paid-up capital requirements for licensed financial institutions and non-bank financial institutions, the minimum on-going capital requirements for financial institutions, a computation of capital adequacy, restrictions on dividends and capital reductions, and the role of the central bank; and
- Part III Prompt Mandatory Corrective Actions and Measures: explains corrective actions, penalties, and administrative sanctions.