Half of Ugandan banks fail pandemic liquidity test
A Bank of Uganda information office in Kampala. New Treasury rules will eliminate dormant accounts. PHOTO | FILE | NMG
More than half of Uganda’s commercial banks would have collapsed if the Central Bank had enforced a three-month customer loans repayments holiday at the onset of the Covid-19 pandemic, the sector regulator has revealed.
A stress test conducted on Uganda’s 25 banks showed most would not have survived the cash crunch since loan interest income accounts for 60 percent of their revenue.
