The Bank of Uganda (BoU) is counting on MPs to support legal frameworks that ensure and reinforce its independence and accountability.
Speaking at a BoU engagement with legislators, the Executive Director of Bank Supervision, Dr Tumubweine Twinemanzi, said there was an urgent need for a customer protection and competition law.
He noted that the existence of a legal framework supporting faster resolution of disputes, contract enforcement and punitive penalties would go a long way in encouraging the providers of financial services to expand their activities.
“This would provide a wide array of options in the realm of financial products for the ordinary person,” he added.
In response, Hon Polycarp Ogwari (Ind. Agule County) asked Bank of Uganda to devise interventions in poor loan repayment due to the COVID-19 pandemic.
“The economy nearly ground to a halt affecting incomes of many businesses and this has in turn affected loan repayment. Let BoU devise solutions for these citizens to exert through the banking sector,” Ogwari proposed.
He also added that as Members of Parliament, they are willing to pass legislation that would aid the smooth running and operations of the Central Bank and the Government at large.
Amuru District Woman Representative, Lucy Akello commended Bank of Uganda for supporting Agency Banking as it supports bank transactions where banks do not exist, especially in rural areas.
However, she proposed to the BoU officials to devise means of boosting electronic cash transactions through the available electronic transaction platforms.
“In Kenya, next door, more often transactions are made through mobile payments to the point that you can make transactions with a street merchandise vendor that are electronic; this is something we ought to propagate in our society,” Akello said.