Some of these organizations tend to have little credit exposure and hence very small required capital under the current regime, but would have significant required capital charges should operational risk be explicitly treated under Pillar 1 of Basel II.
Indeed, this has resulted in investors developing confidence in the economy as evidenced by the recent surge in inflows from offshore investors as well as a surge in remittances from Ugandans in the Diaspora. However, some instability was experienced recently in the forex market, which tended to disrupt the conduct of monetary policy.