We will use supervisory information, firm-specific data, and financial market data to identify developing strains and imbalances that may affect multiple institutions, as well as specific firms. As in the stress tests, our staff members will conduct forward-looking scenario analyses to gauge the potential effects of adverse changes in the operating environment on individual firms and on the system as a whole.
With technology costs falling over time this is one opportunity for addressing some of the cost issues. This notwithstanding, commendable growth in terms of products, size and intermediation has been registered in Uganda’s financial sector over the last decade or so. This growth has however not compromised its soundness, owing in part to the prudent regulation and supervision by the Bank of Uganda.