A payments switch is a tool that facilitates communication between different payment service providers. It typically provides authorizations of transactions and facilitates payment transactions between multiple operators and customers in real-time.
BOU Deputy Governor, Michael Atingi-Ego told the business leaders in the banking, manufacturing, and tourism sectors, that if the rates of borrowing are not controlled by making money costly, it will create worse effects for the private sector.
Bankers' Association ED, Wilbrod Owor says the 1 trillion shilling export facility is being structured to be much cheaper compared to the current available options on the market.
The e-KYC enables the commercial banks and other financial institutions regulated by the Bank of Uganda, to have access to the National Identification Database at the National Identification and Registration Authority, NIRA.
Today, 25 out of 36 financial institutions supervised by BOU have taken on the system and another eight are installing the system.
UBA Executive Director, Wilbrod Owor says the restructuring has seen the lenders extend the repayment period of loans worth Ushs7.3 trillion. He says that as the COVID-19 cases reduced and the measures were lifted, the business, as well as the banking industry, started picking up, but unfortunately, this has been disrupted again.
In a statement, UBA is now rallying all government business facilitation agencies like Uganda Revenue Authority, Uganda Investment Authority, the Ministry of Finance and the Judiciary, as well as private-sector agencies to join "join us in addressing the implications of the judgement and assist in avoiding the adverse effects" of the judgement on the economy and the country.
The reorganization will see the formation of a holding company where the banking business will be transferred as a subsidiary. The company will then invest in non-banking ventures. A holding company refers to a corporation that owns enough voting stock in another company to control its management and policies.