Banking professionals advocate for the establishment of a statutory professional body to regulate the banking industry.

The banking industry in Uganda is calling for the official recognition of the Uganda Institute of Banking and Financial Services as a statutory body responsible for regulating and professionalizing the industry. Industry leaders believe that establishing this statutory body will facilitate the enforcement of standards in the banking sector.

Initially known as the Uganda Institute of Bankers, the institute was established in 1990 under the Companies Act to provide training and certification for professionals in the banking and financial services industry. It has since evolved into an independent entity and currently offers certificate and diploma qualifications in various banking-related areas. The institute has also collaborated with universities, such as Makerere, to develop graduate and undergraduate degree programs.

Michael Mugabi, Chairman of the Institute’s Board and Managing Director of Housing Finance Bank, requested the support of the Bank of Uganda for their proposal, which has been presented to relevant authorities and parliament. The heads of banking institutions in the country have endorsed the bid for statutory recognition.

During the Annual General Meeting and 10th graduation ceremony, attended by 54 students, Goretti Masadde, CEO of the institute, highlighted the significance of the lower graduation numbers compared to previous years. She explained that the decrease was due to the absence of students from Rwanda, as the country now has its own banking institute. Nonetheless, she emphasized that graduating 54 students was still a notable achievement.

Hannington Wasswa, Director of Commercial Banking at the Bank of Uganda, welcomed the bid for statutory recognition and encouraged bankers to support the regional certification program, which aims to establish mutual recognition of qualifications across East African Community (EAC) borders. Wasswa also urged the institute to focus on programs that address the evolving needs of the domestic and global economies, including climate change and money laundering. He emphasized the importance of integrating environmental and social governance aspects into investment projects.

The Bank of Uganda expressed concern about public complaints regarding mishandling by lenders and borrowers attempting to evade loan repayment. Wasswa attributed these issues to the approach taken by bankers and emphasized the need for courses that focus on customer relations to address these challenges.

Masadde agreed that the problems between banks and customers often stem from the banks’ and employees’ approach, underscoring the importance of professionalizing the banking sector.