Table of Contents
DECLARATION ............................................................................................................................. i
APPROVAL .................................................................................................................................. ii
DEDICATION ............................................................................................................................... iii
ACKNOWLEGEMENT ............................................................................................................. iv
LIST OF ACRONYMS ................................................................................................................... v
LIST OF STATUTES .................................................................................................................... vi
LIST OF AUTHORITIES (CASE LAWS) .................................................................................. vii
OBJECTIVES .............................................................................................................................. viii
ABSRACT .................................................................................................................................... xii
CHAPTER ONE .............................................................................................................................. I
GENERAL INTRODUCTION ....................................................................................................... 1
1.0 INTRODUCTION ..................................................................................................................... 1
1.1 HISTORY OF BANKING ........................................................................................................ 2
l.l.IPeriod before Independence to 1980s . ................................................................................. 3
1.1.2 The Period after 1980s to Present. .................................................................................... 5
1.1.3 Regulatory Changes from 20 I 0 to Present. ............................................................................ 6
1.1.4 Background of Bank of Uganda ............................................................................................. 8
1.2 STATEMENT OF THE PROBLEM ......................................................................................... 9
1.3 OBJECTIVES OF THE STUDY ............................................................................................. IO
1.4 JUSTIFICATION FOR TI-lE RESEARCI-1 ............................................................................. 10
1.5 METHODOLOGY .................................................................................................................. 11
1.6 1-IYPOTHESIS ......................................................................................................................... 12
1.7 SCOPE OF THE STUDY ....................................................................................................... 12
1.8 SIGNIFICANCE OF TI-lE STUDY ....................................................................................... 13
ix
1.10 LITERATURE REVIEW ...................................................................................................... 13
CHAPTER TWO ................. .................. .............. .......................................................................... 16
THE LEGAL FRAMEWORK GOVERNING COMMERCIAL BANKS ................................... 16
2.0. EVOLUTION OF COMMERCIAL BANK LAWS ..................................... ......................... 16
2.1 THE -LAW RELATING TO COMMERCIAL BANKS IN UGANDA ................................. 17
2.1.1. The 1995 Constitution of Uganda ................................................................................. ....... 19
2.1.2 The Bills of Exchange Act Cap 68 .................................................................................. ..... 20
2.1.3 The Financial Institutions Act ................................. ............................................................. 22
2.1.4 The Bank of Uganda Act Cap.51 .................................................... ...................................... 24
2.2 CRITIQUE OF THE LEGAL FRAMEWORK ....................................................................... 25
CHAPTER THREE .... ................................................................................................................... 30
THE INSTITUTIONAL FRAMEWORK FOR THE MANAGEMENT OF COMMERCIAL
BANKS ........ ......... ................................. .............................. ......................... .............. ................... 30
3.1 THE BANK OF UGANDA .... ......................................... ........................................................ 30
3.2 THE UGANDA BANKERS INSTITUTE ............................................... ............................... 39
3.3 THE MINISTRY OF FINANCE ........ ..................... ................................................................ 41
3.4 COMMENTS AND ANALYSIS ............................................................................. ............... 43
CHAPTER FOUR .............................................................. ........................................................... 46
LEGAL AND NON-LEGAL CHALLENGES FACING BANKING INDUSTRY IN UGANDA
........ ............................. .. ......... ............... ... ........................ ............. ................................................ 46
4.0 LEGAL CHALLENGES .................... ......... ........... ................................ .. ........... .......... .......... 46
4.1 NONLEGAL CHALLENGES ......................................... ... ..................... ..................... .......... 53
4.2 Conclusions .................... .............................. ............................................................................ 55
CHAPTER FIV£ .... ..................................... ................................................................................. 57
GENERAL RECOMMENDATIONS .................. .. .......... ...... ... ......... .. ............. ......... ................ 51
5. 1 Recommendations ................................................................................................................ .. .. 57
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BIBLIOGRAPHY ...................... .................................................................................................... 62
OBJECTIVES
To examine the law and institutional frame work in commercial banking in Uganda with the view of finding out how adequately Bank of Uganda manage the affairs of commercial banks in a bid to protect public funds from being misappropriated. To determine the efficacy of the present banking rules and regulations with the mm of identifying the weakness in the legal frame work that may call for amendment. To identify the legal and non-legal challenges facing the banking sector in Uganda with a view of determining how such challenges can be solved.
