second semester and first semester law schoool notes, Summaries of Law

Download second semester and first semester law schoool notes and more Summaries Law in PDF only on Docsity! Factors leading to production of non perfomring assets.3 There was automatic liquidity support for U.C.B. from the Bank of Uganda, the bank did not have proper accounting procedures and there was political influence on lending policies of the U.C.B. and corruption.v Political instability, protracted economic crisis, loan disruptions and a weak legal regime The Financial Institutions Act, 2004 The Act commenced on the 26th day of March, 2004 with the aim of revising and consolidating the law relating to financial institutions, to provide for the regulation, control and discipline of financial institutions by the Central Bank, to repeal the Financial Institutions Act, Cap. 54 and to provide for other related matters. (a) To Examine the primary causes of the failure and subsequent closure of International Credit Bank (ICB), the Greenland Bank Ltd (GBL), and the Cooperative Bank Ltd. (b) Make recommendations to strengthen the prudential regulation and supervision of banks and strengthen the Bank of Uganda’s intervention policy towards failed banks in order to protect depositors and public funds. In Jan 2016 parliament passed the Financial Institutions (Amendment) Act, 2016 with the objective of amending the Financial Institutions Act, 2004, to provide for Islamic banking, to provide for bancassurance, to provide for agent banking, to provide for special access Qualities considered before a bank contracts a person (integrity), his competence soundness of judgment, the conditions for revoking the license (a) a bank is significantly undercapitalized (b) is conducting business in a manner detrimental to the interests of depositors, (c) is engaging in serious deception of the Central bank or the general public in respect of its financial condition, ownership, management, operations or other facts material to its business, (d) has without consent of the central bank amalgamated with another financial institution or sold or otherwise transferred its assets and liabilities to another financial institution, (e) has failed to comply with the condition in its license Conditions under the fit proper person test (a) will not be contrary to the public interest; (b) will not be contrary to the interests of the financial institution concerned or its depositors; (c) will not be detrimental to the financial services industry in general. Sec. 51(1e) FIA define “corporate governance” to cover the overall environment in which the financial institution operates comprising a system of checks and balances which promotes a healthy balancing of risk and return, and in the case of a financial institution which conducts Islamic financial business, promotes compliance with the Sharia’ah. Supervision CAMEL (a) capital adequacy, (b) asset quality (c) management and administrative ability, (e) earning level and quality (f) liquidity level DPF The purpose of the fund is a deposit insurance scheme for customers of contributing institutions, may act as a receiver or liquidator of a financial institution if appointed by the Central Bank. it reduces bank panic and loss of public confidence in the banking system. ISLAMIC BANK ;A shariah Advisory Board means a Board appointed by a financial institution to advise, approve and review activities of a Islamic financial business inorder to ensure that the financial institution complies with the Shariah Conditions for not giving consent for amalgamation (a) that the transaction will not be detrimental to the public interest, (b) in case of amalgamation, that it is an amalgamation of banks only, or