Mp to introduce bill to separate BOU powers

By Ritah Kemigisa.

The Igara East Member of parliament Michael Mawanda says he is to introduce a private member’s bill for an amendment of the Bank of Uganda act.

He says this will pave way for the creation of a new regulatory authority for Commercial Banks if they are to ensure safe and sound financial institutions.

This is after the parliamentary committee on Commissions, statutory authorities and state enterprises (COSASE) faulted Bank of Uganda for the failure to effectively monitor and supervise seven commercial banks leading to their closure.

Mawanda says the amendment will help in preventing conflict of interest in commercial bank supervision and for Bank of Uganda to concentrate on its core mandate of promoting monetary stability and a sound financial system.