While the stability of the global financial system is threatened following the the closure of several banks like Credit Suisse, Silicon Valley Bank and others being on the verge, the biggest single threat to the stability of the Ugandan financial sector is bank fraud.
The central bank says that bank fraud is a huge threat to the country’s financial stability.
The director commercial banking at Bank of Uganda Hannington Wasswa explains that, “Fraud fundamentally affects the profitability of commercial banks and makes them weaker thus destabilising the financial sector ”
The annual police crime report by police indicates that out of the 13,202 economic and corruption crimes reported in the year, 82 cases were related to banks and other corporate fraud.
Wasswa puts it in context that, “If two million people lost 10,000 shillings that would translate into 2 billion shillings in a year, a loss big enough to destabilise the stability of the financial sector ”
Nearly all the 25 licensed commercial banks in Uganda as of June 2022, have witnessed some financial fraud of sorts threatening their operations and the central bank continues to carry out investigations along with the CID.
The Bank of Uganda along with its partners are committing to protect the financial sector from collapse through through the Beera Steady Campaign.