Bankers to establish asset reconstruction company

By Oyet Okwera           

The Chairman Uganda Bankers' Association, Fabian Kasi, has said commercial banks will set up an asset reconstruction company.

The company is intended to have a positive effect on the non-performing portfolios of member banks.

 "As we move into integration of East African Community (EAC), there is need to align all banking regulations. We are also interested in the quality of assets on our loan books, so we have funded a study to look into the viability of establishing an asset reconstruction company in our market. This will go a long way in cleaning up the non-performing portfolios of member banks," explained Kasi

He was addressing stakeholders during the bankers’ annual dinner at Sheraton hotel, organized jointly by Uganda Institute of Financial Services (UIFS) and Uganda Bankers' Association (UBA).

Selected bankers received accolades for outstanding performance with ripple effects in the industry.

He urged policy makers to fast track the passing of laws that will enable the provision of more products like Islamic banking, bancassurance among others. Bancassurance also known as  Bank Insurance Model (BIM) is a partnership between a bank and an insurance company whereby the insurance company can sell its products to the bank's client base.

Mary Katarikawe, an official from Bank of Uganda (BoU) read Governor Emmanuel Mutebile's speech at the dinner.

Mutebile commended commercial banks for spreading financial inclusion saying stakeholder engagement is the right direction towards achieving sustainable financial targets.

He was optimistic because bankers were keeping abreast with the challenges they grapple with through embracing several refresher courses.

The   statement comes at a time the central bank is set to announce the monetary policy for November 2015 and analysts are predicting a further hike benchmark Central Bank Rate (CBR).

Joram Kahenano, the UIBF board chairperson said bankers should often network and reflect on the current issues affecting the industry. Kahenano believes that continuous stakeholder engagement is key in finding solutions to challenges.

Professor Ddumba Sentamu, vice chancellor Makerere University and Annet Nakawunde, MD of Finance Trust bank were awarded with UIBF honorary fellowship.

The award of UIBF fellow went to Jane Aik, CEO of UIBF, Peter Kalangwa of Housing Finance bank, Joseph Lutwama of Centenary bank , Fred Kinene of national social security fund (NSSF), Anthony Mulindwa of Stanbic bank and George Ochom of dfcu bank.

Eight other bankers attained the award of UIBF Associates while Joram Kahenano from Federation of Uganda Institute of Bankers (FUIB) received the life membership award due to his distinguished services. Ends