From American Banker By Eric Fishcer October 28, 2014 Board members at smaller banks often...
Micro Finance Deposit-Taking Institutions Act No. 5
(enacted in 2003)
Micro Finance Deposit-Taking Institutions Act No. 5 of 2003 provides for the licensing, regulation, and supervision of microfinance deposit-taking institutions in Uganda.
This act consists of the following eight parts:
- Part I Preliminary: defines language within this act;
- Part II Licensing: includes sections on licensing, capital requirements, capital adequacy requirements, minimum liquid assets, and other matters related to licensing;
- Part III Restrictions on Certain Transactions and Dealings by Microfinance Deposit-Taking Institutions: covers topics on credit facilities and limits, prohibited transactions, and payment of dividends;
- Part IV Ownership and Corporate Governance: provides information on the ownership, leadership, and management of the institution, the role and duties of external auditors, and the role of the credit reference bureau;
- Part V Supervision of Microfinance Deposit-Taking Institutions: focuses on the responsibilities, duties and powers of the Central Bank, management take-over, and powers and duties of a statutory manager;
- Part VI Receivership: discusses placing an institution under receivership and options available to a receiver;
- Part VII Liquidation: addresses the bar on liquidation, voluntary liquidation, duties of a liquidator, and liquidation by the Central Bank; and
- Part VIII Miscellaneous.