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Part IV Legal Aspects of Central Banking and Banking Regulation and Supervision, 21 Supervisory Lessons from Bank Failures in Uganda

Agasha Mugasha

From: International Monetary and Banking Law post COVID-19

Edited By: William Blair, Christos Gortsos, Chiara Zilioli

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 19 April 2024

Bank supervision — Financial regulation — Liquidity — Monetary system

This chapter analyses bank failures in Uganda as an illustration of a wider trend in Africa. It utilises the two case studies of the defunct Greenland Bank Ltd and Crane Bank Ltd to submit that the headline reasons for the bank failures; namely insolvency or undercapitalisation and imprudent practices, were symptoms of some more fundamental reasons about weak corporate governance in the banks and weak supervision by the central bank. The chapter notes that while the central bank mandates have progressively broadened beyond monetary policy, there has not been a commensurate increase in the capacity for and focus on the supervision of the conduct of business by the banks and, yet that has been a key factor in the bank failures.

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