Skip to content
Wakilii
Sign in Sign up free
Back to laws

Financial Institutions (Capital Buffers and Leverage Ratio) Regulations

Statutory Instrument 147 of 2020 Current version · as at 31 December 2020
Enacted2020
Commenced31 December 2020
Last amended—
Point-in-time consolidation · as at 31 December 2020. This page may not reflect amendments made after that date. Confirm the current position against the latest Uganda Gazette before relying on it.

About this Act

A full descriptive summary for this Act has not been recorded yet.

Jurisdiction
Uganda
Type
Principal Legislation
Status
In force
Language
English

Full text of the Act

4 parts · 11 sections

Enhanced Annotated View adds approved, source-linked propositions, operative requirements, judicial passages, related provisions, amendment notes and authority status. Choose Original PDF to inspect the source consolidation.

Uganda

Financial Institutions (Capital Buffers and Leverage Ratio) Regulations

Commenced on 31 December 2020

[This is the version of this document at 31 December 2020.]

Part I

1. Title

These Regulations may be cited as the Financial Institutions (Capital Buffers and Leverage Ratio) Regulations, 2020.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Title”.

“These Regulations may be cited as the Financial Institutions (Capital Buffers and Leverage Ratio) Regulations, 2020.”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

1
  1. These Regulations may be cited as the Financial Institutions (Capital Buffers and Leverage Ratio) Regulations, 2020.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
2. Application

These Regulations apply to all financial institutions.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Scope rule

This section defines when and how “Application” applies.

“These Regulations apply to all financial institutions.”
Primary legislation Source quotation matched
Practical effect

Confirm that the matter and forum fall within this section before applying the Act's remaining provisions.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

0

This section states a single governing proposition and does not enumerate separate elements.

Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
3. Interpretation

In these Regulations, unless the context otherwise requires-

"Act" means the Financial Institutions Act, Act No.2 of 2004;

"financial institution" has the meaning assigned to it under the Financial Institutions Act, Act No.2 of 2004;

"capital conservation buffer" means a ratio of additional capital in relation to the total risk adjusted assets plus the risk adjusted off balance sheet items, over and above the minimum on going core capital and total capital requirements specified under section 27(1) of the Financial Institutions Act, 2004;

"combined buffer" means the consolidated sum of the capital conservation buffer, the countercyclical capital buffer and the systemic risk buffer;

"core capital (Tier 1) has the meaning assigned to it under the Financial Institutions (Capital Adequacy Requirements) Regulations, 2018; tl countercyclical capital buffer" means a ratio of extra capital in relation to the risk adjusted assets plus risk adjusted off balance sheet items that every financial institution shall maintain, over and above the regulatory minimum on going core capital and total capital requirements and the capital conservation buffer of that financial institution;

"risk adjusted assets plus risk adjusted off balance sheet items" has the meaning assigned to it under the Financial Institutions (Capital Adequacy Requirements) Regulations, 2018;

"systemic risk buffer" means the ratio of additional core capital (Tier 1) in relation to the risk adjusted assets plus risk adjusted off balance sheet items over and above the regulatory minimum on going core capital and total capital requirements plus the capital conservation buffer, to be held by a systemically important financial institution;

"systemically important financial institution" means a financial institution whose impairment or failure may trigger a financial disruption within the economy; and

"total capital" means the sum of core capital and supplementary capital as defined under the Financial Institutions (Capital Adequacy Requirements) Regulations, 2018.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Definition

This section supplies the definitions or statutory meaning governing “Interpretation”.

“In these Regulations, unless the context otherwise requires-”
Primary legislation Source quotation matched
Practical effect

Use this definition when interpreting other provisions that employ the language addressed by “Interpretation”.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

9
  1. "Act" means the Financial Institutions Act, Act No.2 of 2004;
  2. "financial institution" has the meaning assigned to it under the Financial Institutions Act, Act No.2 of 2004;
  3. "capital conservation buffer" means a ratio of additional capital in relation to the total risk adjusted assets plus the risk adjusted off balance sheet items, over and above the minimum on going core capital and total capital requirements specified under section 27(1) of the Financial Institutions Act, 2004;
  4. "combined buffer" means the consolidated sum of the capital conservation buffer, the countercyclical capital buffer and the systemic risk buffer;
  5. "core capital (Tier 1) has the meaning assigned to it under the Financial Institutions (Capital Adequacy Requirements) Regulations, 2018; tl countercyclical capital buffer" means a ratio of extra capital in relation to the risk adjusted assets plus risk adjusted off balance sheet items that every financial institution shall maintain, over and above the regulatory minimum on going core capital and total capital requirements and the capital conservation buffer of that financial institution;
  6. "risk adjusted assets plus risk adjusted off balance sheet items" has the meaning assigned to it under the Financial Institutions (Capital Adequacy Requirements) Regulations, 2018;
  7. "systemic risk buffer" means the ratio of additional core capital (Tier 1) in relation to the risk adjusted assets plus risk adjusted off balance sheet items over and above the regulatory minimum on going core capital and total capital requirements plus the capital conservation buffer, to be held by a systemically important financial institution;
  8. "systemically important financial institution" means a financial institution whose impairment or failure may trigger a financial disruption within the economy; and

1 further item remain in the statutory text above.

Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions
Financial Institutions Act
Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
4. Objectives

The objectives of these Regulations are to-

(a)

prescribe the capital buffer requirement for financial institutions;

(b)

ensure that financial institutions maintain capital standards r recognized internationally as prudent;

(C)

provide financial institutions with a buffer for losses during periods of financial and economic stress without breaching the minimum core capital and total capital adequacy requirements, protect the financial institutions sector from the buildup of systemic risks during an economic upswing when aggregate credit growth tends to be excessive and reduce the likelihood of impairment or failure of systemically important financial institutions; and

(d)

help promote and maintain public confidence in the Ugandan financial sector.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Governing rule

This section states the governing statutory rule for “Objectives”.

“The objectives of these Regulations are to-”
Primary legislation Source quotation matched
Practical effect

Use this section as the starting statutory rule for “Objectives”, together with the linked provisions and current consolidation.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

4
  1. (a) prescribe the capital buffer requirement for financial institutions;
  2. (b) ensure that financial institutions maintain capital standards r recognized internationally as prudent;
  3. (C) provide financial institutions with a buffer for losses during periods of financial and economic stress without breaching the minimum core capital and total capital adequacy requirements, protect the financial institutions sector from the buildup of systemic risks during an economic upswing when aggregate credit growth tends to be excessive and reduce the likelihood of impairment or failure of systemically important financial institutions; and
  4. (d) help promote and maintain public confidence in the Ugandan financial sector.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part II

5. Capital conservation buffer
(1)

A financial institution shall at all times maintain a capital conservation buffer of 2.5% of the total risk adjusted assets plus risk adjusted off balance sheet items, over and above the minimum on going core capital and total capital requirements prescribed under the Act and these Regulations.

(2)

The capital conservation buffer shall be met by core capital (Tier 1).

(3)

For purposes of subregulation (1), the minimum on going core capital and total capital requirements and the capital conservation buffer shall comprise of-

(a)

a core capital (Tier 1) of not less than 12.5% of total risk adjusted assets plus risk adjusted off balance sheet items of the financial institution; and (b) a total capital of not less than 14.5% of total risk adjusted assets plus risk adjusted off balance sheet items of the financial institution.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Capital conservation buffer”.

“(1) A financial institution shall at all times maintain a capital conservation buffer of 2.5% of the total risk adjusted assets plus risk adjusted off balance sheet items, over and above the minimum on going core capital and total capital requirements prescribed under the Act and these Regulations.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

4
  1. (1) A financial institution shall at all times maintain a capital conservation buffer of 2.5% of the total risk adjusted assets plus risk adjusted off balance sheet items, over and above the minimum on going core capital and total capital requirements prescribed under the Act and these Regulations.
  2. (2) The capital conservation buffer shall be met by core capital (Tier 1).
  3. (3) For purposes of subregulation (1), the minimum on going core capital and total capital requirements and the capital conservation buffer shall comprise of-
  4. (a) a core capital (Tier 1) of not less than 12.5% of total risk adjusted assets plus risk adjusted off balance sheet items of the financial institution; and (b) a total capital of not less than 14.5% of total risk adjusted assets plus risk adjusted off balance sheet items of the financial institution.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
6. Systemic risk buffer
(1)

The Central Bank may designate a financial institution as a systemically important financial institution.

(2)

The Central Bank shall by notice in writing notify a financial institution designated as a systemically important financial institution under subregulation (1), of its designation.

(3)

Every financial institution designated as a systemically important financial institution, shall maintain the systemic risk buffer ranging from 0% to 3.5% of the risk adjusted assets plus the risk adjusted off balance sheet items, over and above-

(a)

the minimum on going core capital requirements and the total capital requirements; and

(b)

the capital conservation buffer.

(4)

The Central Bank shall determine the level of the systemic risk buffer to be maintained by the financial institution and shall notify the financial institution in writing. I (5) The systemic risk buffer shall be met by core capital (Tier 1).

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Systemic risk buffer”.

“(1) The Central Bank may designate a financial institution as a systemically important financial institution.”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

6
  1. (1) The Central Bank may designate a financial institution as a systemically important financial institution.
  2. (2) The Central Bank shall by notice in writing notify a financial institution designated as a systemically important financial institution under subregulation (1), of its designation.
  3. (3) Every financial institution designated as a systemically important financial institution, shall maintain the systemic risk buffer ranging from 0% to 3.5% of the risk adjusted assets plus the risk adjusted off balance sheet items, over and above-
  4. (a) the minimum on going core capital requirements and the total capital requirements; and
  5. (b) the capital conservation buffer.
  6. (4) The Central Bank shall determine the level of the systemic risk buffer to be maintained by the financial institution and shall notify the financial institution in writing. I (5) The systemic risk buffer shall be met by core capital (Tier 1).
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
7. Countercyclical capital buffer
(1)

The Central Bank may require a financial institution to maintain a countercyclical capital buffer in addition to the capital conservation buffer required under regulation 5.

(2)

The countercyclical capital buffer may range from 0% to 2.5% of total risk adjusted assets and the risk adjusted off the balance sheet items of the financial institution.

(3)

The countercyclical capital buffer shall be determined by the weighted-average of the prevailing countercyclical capital buffer requirements applied in the jurisdictions where the financial institution has credit exposures.

(4)

The countercyclical capital buffer shall be met by core capital (Tier 1).

(5)

The Central Bank shall, in writing to the financial institution referred to in subregulation (1), prescribe the counter cyclical buffer and the disclosure requirements to be maintained by the financial institution.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Jurisdictional rule

This section establishes the jurisdictional rule for “Countercyclical capital buffer”.

“(1) The Central Bank may require a financial institution to maintain a countercyclical capital buffer in addition to the capital conservation buffer required under regulation 5.”
Primary legislation Source quotation matched
Practical effect

A litigant should establish this jurisdictional basis before asking the court to determine the merits.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

5
  1. (1) The Central Bank may require a financial institution to maintain a countercyclical capital buffer in addition to the capital conservation buffer required under regulation 5.
  2. (2) The countercyclical capital buffer may range from 0% to 2.5% of total risk adjusted assets and the risk adjusted off the balance sheet items of the financial institution.
  3. (3) The countercyclical capital buffer shall be determined by the weighted-average of the prevailing countercyclical capital buffer requirements applied in the jurisdictions where the financial institution has credit exposures.
  4. (4) The countercyclical capital buffer shall be met by core capital (Tier 1).
  5. (5) The Central Bank shall, in writing to the financial institution referred to in subregulation (1), prescribe the counter cyclical buffer and the disclosure requirements to be maintained by the financial institution.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
8. Failure to meet prescribed buffer requirements
(1)

A financial institution that fails to maintain the prescribed capital conservation buffer shall not make any distribution in connection with Tier 1 capital, to the extent that the distribution would decrease the Tier 1 capital of the financial institution to a level where the financial institution is unable to meet the capital conservation buffer requirements.

(2)

Where a financial institution fails to maintain the prescribed capital conservation buffer, that financial institution shall not be allowed to- (a) distribute capital; (b) declare or pay out dividends; (c) pay out bonuses, salary incentives, severance packages; or (d) pay out management fees or other discretionary compensation to the directors or officers of the financial institution. 7423 I

(3)

Where a financial institution is required to maintain the systemic risk buffer prescribed under regulation 6, the restrictions under subregulations (1) and (2) of this regulation shall apply to the financial institution.

(4)

Where a financial institution is required to maintain a countercyclical capital buffer prescribed under regulation 7 the restrictions under subregulations (1) and (2) of this regulation, shall apply to the financial institution.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Failure to meet prescribed buffer requirements”.

“(1) A financial institution that fails to maintain the prescribed capital conservation buffer shall not make any distribution in connection with Tier 1 capital, to the extent that the distribution would decrease the Tier 1 capital of the financial institution to a level where the financial institution is unable to meet the capital conservation buffer requirements.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

4
  1. (1) A financial institution that fails to maintain the prescribed capital conservation buffer shall not make any distribution in connection with Tier 1 capital, to the extent that the distribution would decrease the Tier 1 capital of the financial institution to a level where the financial institution is unable to meet the capital conservation buffer requirements.
  2. (2) Where a financial institution fails to maintain the prescribed capital conservation buffer, that financial institution shall not be allowed to- (a) distribute capital; (b) declare or pay out dividends; (c) pay out bonuses, salary incentives, severance packages; or (d) pay out management fees or other discretionary compensation to the directors or officers of the financial institution. 7423 I
  3. (3) Where a financial institution is required to maintain the systemic risk buffer prescribed under regulation 6, the restrictions under subregulations (1) and (2) of this regulation shall apply to the financial institution.
  4. (4) Where a financial institution is required to maintain a countercyclical capital buffer prescribed under regulation 7 the restrictions under subregulations (1) and (2) of this regulation, shall apply to the financial institution.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history
9. Capital conservation plan
(1)

Where a financial institution fails to maintain the required capital conservation buffer or the combined buffer requirements, as the case may be, the financial institution shall prepare a capital conservation plan and submit it to the Central Bank for approval within forty five working days from the day the financial institution recognised the inability to meet that requirement.

(2)

The capital conservation plan referred to in subregulation (1) shall include-

(a)

estimates of income and expenditure and a forecast balance sheet of the financial institution;

(b)

proposed measures to increase the capital buffers of the financial institution;

(c)

a plan and timeframe for the increase of core capital (Tier 1) for compliance with the combined buffer requirements; and

(d)

any other information that the Central Bank deems necessary for carrying out the assessment.

(3)

Where the Central Bank does not approve the capital conservation plan prepared by a financial institution in accordance with subregulation (1), the Central Bank shall require the affected financial institution to increase the core capital to specified levels within a set period of time.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Capital conservation plan”.

“(1) Where a financial institution fails to maintain the required capital conservation buffer or the combined buffer requirements, as the case may be, the financial institution shall prepare a capital conservation plan and submit it to the Central Bank for approval within forty five working days from the day the financial institution recognised the inability to meet that requirement.”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

7
  1. (1) Where a financial institution fails to maintain the required capital conservation buffer or the combined buffer requirements, as the case may be, the financial institution shall prepare a capital conservation plan and submit it to the Central Bank for approval within forty five working days from the day the financial institution recognised the inability to meet that requirement.
  2. (2) The capital conservation plan referred to in subregulation (1) shall include-
  3. (a) estimates of income and expenditure and a forecast balance sheet of the financial institution;
  4. (b) proposed measures to increase the capital buffers of the financial institution;
  5. (c) a plan and timeframe for the increase of core capital (Tier 1) for compliance with the combined buffer requirements; and
  6. (d) any other information that the Central Bank deems necessary for carrying out the assessment.
  7. (3) Where the Central Bank does not approve the capital conservation plan prepared by a financial institution in accordance with subregulation (1), the Central Bank shall require the affected financial institution to increase the core capital to specified levels within a set period of time.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part III

10. Leverage ratio requirements
(1)

A financial institution must at all times comply with a leverage ratio equal to or greater than 6% of the total balance sheet and off balance sheet assets.

(2)

The leverage ratio referred to in subregulation(l) shall be-

(a)

calculated as the core capital of the financial institution divided by the total balance sheet of the financial institution plus off balance sheet exposure; and i

(b)

expressed as a percentage.

(3)

The Central Bank shall by notice to the financial institution, set out the methodology for the computation of the leverage ratio and the reporting requirements required of the financial institution.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Mandatory duty

This section imposes mandatory requirements concerning “Leverage ratio requirements”.

“(1) A financial institution must at all times comply with a leverage ratio equal to or greater than 6% of the total balance sheet and off balance sheet assets.”
Primary legislation Source quotation matched
Practical effect

The provision uses mandatory language; the responsible person or institution should be able to demonstrate compliance.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

5
  1. (1) A financial institution must at all times comply with a leverage ratio equal to or greater than 6% of the total balance sheet and off balance sheet assets.
  2. (2) The leverage ratio referred to in subregulation(l) shall be-
  3. (a) calculated as the core capital of the financial institution divided by the total balance sheet of the financial institution plus off balance sheet exposure; and i
  4. (b) expressed as a percentage.
  5. (3) The Central Bank shall by notice to the financial institution, set out the methodology for the computation of the leverage ratio and the reporting requirements required of the financial institution.
Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Part IV

11. Administrative sanctions The Central Bank may, in addition to the corrective actions prescribed under the Financial Institutions Act, 2004, impose any of the following administrative sanctions against a financial institution or against an officer of the financial institution who fails to comply with the requirements of

these Regulations (a) prohibit the expansion or engagement of the financial institution into new financial institution business activities;

Cross Reference The Financial Institutions (Capital Adequacy Requirements) Regulations, 2018, Statutory Instrument No. 21 of 2018.

E. TUMUSIIME-MUTEBILE (PROFFESSOR) Governor.

Section analysis Source-linked statutory analysis Source linked
Approved statute annotation. Statutory quotations are matched to this consolidation and judicial passages are linked to judgments. Check the primary sources alongside this analysis.
What this section does
Statutory power

This section confers or regulates the statutory power described as “Administrative sanctions The Central Bank may, in addition to the corrective actions prescribed under the Financial Institutions Act, 2004, impose any of the following administrative sanctions against a financial institution or against an officer of the financial institution who fails to comply with the requirements of”.

“these Regulations (a) prohibit the expansion or engagement of the financial institution into new financial institution business activities;”
Primary legislation Source quotation matched
Practical effect

The power must be exercised by the authorised decision-maker, within the conditions and purpose stated in the section.

Deterministic editorial synthesis — not a substitute for the statutory text Editorial synthesis approved
Elements or requirements

Operative requirements extracted from the consolidated text.

0

This section states a single governing proposition and does not enumerate separate elements.

Judicial interpretation

Express propositions in source-matched passages from judgments citing this section.

0

No judgment in the current Wakilii corpus expressly cites this section. Bare rule-number references are not assigned where the Order cannot be verified.

Related provisions

No express internal or cross-Act reference appears in this section.

Amendment notes

No section-specific amendment note or instrument-level amendment history appears in this consolidation.

Authority status: legislation is primary authority; judgment weight follows the displayed court level and the ratio caveat. Check version history

Original Laws of Uganda consolidation (as at 31 December 2020) — public-domain legislation, consolidated by ULII / Laws.Africa (CC BY 4.0). This is a point-in-time text and may not reflect later amendments; confirm against the latest Uganda Gazette before relying on it.