Thirdly, the Ugandan banking system, despite its buoyant growth in the 2000s, is well capitalised, has much lower leverage ratios than banks in developed countries and has stronger liquidity. As a result, the balance sheets of banks in Uganda are much less vulnerable to negative shocks to the quality of their assets and to their liquidity than were many banks in the developed countries.
Strengthening solvency and liquidity The core Tier 1 ratio of the banking system increased from 8.1% at the end of 2010 to 11.9% at the end of the second quarter of 2013. From 2010 on, Banco de Portugal has adopted several measures towards preserving adequate capital ratios.