Publication: Financial Sector Assessment Update : Uganda
Loading...
Date
2005-05
ISSN
Published
2005-05
Author(s)
Editor(s)
Abstract
A joint International Monetary Fund-World Bank team conducted an assessment update of Uganda's financial system in connection with the Financial Sector Assessment Program (FSAP) in November, 2004. The purpose of the mission was to help the Ugandan authorities identify financial system strengths and weaknesses with a view to implementing an action plan to increase the system's contribution to economic development. This report is an overall assessment of progress since 2001 of the FSAP and policy agenda. It examines the efficiency and outreach of the financial system and finds: a) a healthy but underdeveloped financial system; and b) improving financial system efficiency and outreach. The second part assesses the promotion of term financing and developing capital markets in the areas of: pensions, term financing, the Uganda Development Bank, the Uganda stock exchange, housing finance, and domestic government debt markets. The third part focuses on financial sector supervision, including safety net and crisis management.
Link to Data Set
Citation
“World Bank. 2005. Financial Sector Assessment Update : Uganda. © World Bank. http://hdl.handle.net/10986/15956 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Mexico : Financial Sector Assessment(Washington, DC, 2002-10)The report is based on the joint International Monetary Fund-World Bank Financial Sector Assessment Program (FSAP), and summarizes the quantitative data through end-2000, although the quantitative discussion in this report has been updated to reflect salient developments since then. The FSAP took place at an important juncture for the development of the financial sector, with major legal reforms being introduced, which for the most part, were consistent with FSAP recommendations. Consequences of the 1994/95 banking crisis have been absorbed, with the associated fiscal losses transparently allocated to the public sector, in the form of explicit IPAB (Instituto de Proteccion de Ahorros Bancarios) debt. Macroeconomic indicators strengthened significantly since the crisis, due to the improved policy management, and closer links to the US economy. However, while the policy of increasing the share of domestic public sector debt has gains in terms of reduced vulnerability, it is not without costs, for regulations discourage loan dollarization, and limit systemic liquidity risks, but may lead to lower credit, and higher lending spreads. The Government is active in the financial system through a large network of development banks (DBs), and funds, entailing a significant burden, in many cases, hampering market development. Thus, a reform strategy to overcome tensions should aim at separating subsidies from finance, at consolidating DBs, and at gradually transforming some DBs into development agencies. This report further looks at private banking system trends, performance and stress testing, at state ownership in financial intermediation, and at policy issues in prudential regulation, securities market development, and the insurance sector.Publication Uruguay : Financial Sector Review(Washington, DC, 2000-11-15)The study reviews Uruguay's financial sector, identifying a well-developed banking sector, which reflects off-shore banking growth stimulated by regional macroeconomic instability, and by the country's strict national banking laws. By contrast, the country's capital market is underdeveloped, with a market capitalization of less than one percent of GDP, compared to the average ten percent in emerging markets. Similarly, the contractual savings sector, including pension/mutual funds, and insurance companies, is highly incipient. The small open economy has significant implications for its financial sector strategy, since its domestic economy is not large enough to sustain a domestic financial sector, particularly considering increased border trade in financial services, via electronic banking, and securities trading. Thus, its alternative may be to become highly competitive in banking services, including exporting these services. Based on substantiated evidence, it is suggested that the comparative advantage of Uruguayan banks is gradually eroding, but should it become competitive, the country could export some banking services, provided it explores setting up a regional stock exchange within MERCOSUR, which may well improve liquidity, rather than revive local exchanges; improve the constrained private participation (resulting from a preponderant State role); and, strengthen regulatory, and supervisory framework.Publication Serbia : Financial Sector Assessment(World Bank, Washington, DC, 2010-06-08)The Financial Sector Assessment Program (FSAP) update team found that the authorities have progressed in implementing the key recommendations from the initial assessment. The 2005 FSAP team revealed a number of vulnerabilities, including (i) high credit growth, largely financed by foreign banks, which resulted in rising nonperforming loans (NPLs), and (ii) poor management and low capital of several systematically important state-controlled banks. The Basel Core Principle on Banking Supervision (BCP) assessment identified a number of deficiencies in banking supervision. The update team found that the authorities took action to address the issues highlighted by the 2005 FSAP. In particular, they adopted prudential measures to slow credit growth, including higher risk weights for foreign currency loans to un-hedged borrowers, and exposure limits to households. Two systemic state-controlled banks were privatized. Finally, a new banking law was enacted that significantly strengthened supervision on consolidated basis and improved corporate governance and transparency.Publication Georgia : Financial Sector Assessment Update(Washington, DC, 2007-01)The Financial System Assessment (FSA) is based on the work of the joint IMF-World Bank Financial Sector Assessment Program (FSAP) Update mission to Georgia during February 15-28,2006. The principal objective of the FSAP Update was to assist the authorities in evaluating the potential vulnerabilities and development priorities of the Georgian financial system. Following reviews within the IMF and the World Bank. The report provides a summary of the main findings and recommendations. Some of he priority recommendations are : Crisis Management and Bank Resolution : establish formal crisis management team and develop a crisis management strategy and contingency plan. Financial Sector Supervision : amend law to give the NBG authority to establish fit and proper criteria for bank owners, to determine the source of the owners' capital, and to mandate changes in a bank's ownership. The same power should also be given to insurance and securities supervisors; also amend regulations to apply capital and other prudential requirements on a consolidated basis; and adopt legislation to stimulate cooperation and allow for the sharing of information among domestic financial sector supervisors. Financial Sector Development : develop, under the lead of the NBG, elements of the financial sector infrastructure, including low the value payments system and widespread use of electronic payment instruments throughout the country; develop a national strategy to address the lack of financial services in large parts of the country, especially in rural areas; and allow insurance companies to diversify their investments.Publication Bulgaria Detailed Assessment of Observance(Washington, DC, 2015-09)This assessment of the current state of the implementation of the Basel core principles (BCP) for effective banking supervision in Bulgaria has been completed as a stand-alone report on the observance of standards and codes undertaken by the international monetary fund (IMF) and the World Bank during March of 2015 at the request of the Bulgarian authorities. It reflects the regulatory and supervisory framework in place as of the date of the completion of the assessment. The Bulgarian National Bank (BNB) has an internal governance structure which, by vesting the majority of the powers of supervision in the Deputy Governor for banking supervision, exposes the supervisory function to risks. Under the BNB’s legal structure, supervision and enforcement is dissociated from the Governing Council, and the Governing Council has no right to compel transparency of decision making or to impose a framework to ensure consistency in the use of the enforcement regime. There are material concerns that the BNB is too resource constrained to deliver effective minimum levels of supervision. Despite a broad range of supervisory powers, there are some gaps in the legal framework that unduly restrict the BNB’s locus. The BNB has a good understanding of risk and many strong practices, and also making good use of international standards and guidelines, but there are some important system wide vulnerabilities. The assessment team reviewed the framework of laws, rules, and guidance and held extensive meetings with officials of the BNB, and additional meetings with the Finance Ministry, auditing firms, professional bodies, and banking sector participants. The authorities provided a comprehensive self-assessment of the CPs, as well as detailed responses to additional questionnaires, and facilitated access to supervisory documents and files on a confidential basis as well as staff and systems.
Users also downloaded
Showing related downloaded files
Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.