Banks in Uganda 'must improve risk management'

Mar 11, 2011

Banks in Uganda have been urged to improve their risk management systems in a bid to combat fraud and money laundering.

An official from the Bank of Uganda (BoU) has claimed financial institutions in the country need to do more to improve their risk management systems.

Justine Bagyenda, Executive Director of Supervision at the organisation, said improvements must be put in place as banks increasingly look to expand their branch networks and develop new products, the Daily Monitor reports.

Furthermore, technological advances mean there are many new threats to banking such as fraud, money laundering and operational or reputational risks.

The news provider explained that several institutions in Uganda have lost money because of fraud over the past few years.

These include Crane Bank, the Bank of Africa, Stanbic and Barclays.

Ms Bagyenda urged financial firms to put risk management systems in place to improve their chances of identifying problems and coping with the impact they have.

As well as advising the government on both financial and economic issues, the BoU supervises and regulates institutions while managing the country's foreign reserves.