Uganda’s new, higher minimum capital rules for lenders kick in, rattle investors
Many investors feel hard-pressed mobilising substantial amounts of money from capital markets due to widespread pessimism among lenders and wealthy individuals. PHOTO | SHUTTERSTOCK
Uganda has finally begun implementing tighter rules on capital injection for financial institutions, seeking to cushion firms from unforeseen global shocks. But those rules may, on their own, become a suppression tool for investors who feel the new requirements are too stiff.
The Ministry of Finance this month began rolling out the regulations, requiring, for instance, that commercial banks have at least Ush150 billion ($40.7 million) in capital, up from Ush25 billion ($6.8 million).
