Thread by @pwatchug

Hon. Keefa Kiwanuka has presented the Report on the Micro Finance Deposit-Taking Institutions (Amendment) Bill 2022.

▶️Attached is the report parliamentwatch.ug/wp-content/upl…

The Committee observed that commercial banks have higher capital and equity requirements for licensing as to justify the use of the word "bank", as compared to MDIs.
#PlenaryUg

The Financial Institutions (Revision of Minimum Capital Requirements) Instrument, S.I No. 30 of 2022 set the minimum capital requirements for financial institutions at Shs 150bn and for the MDIs at Shs 1Obn.
#PlenaryUg

The Committee observed that the MDIs were emphatic on using the word bank because this will enable them to mobilize deposits. With the increase in deposits, the MDIs will not have to borrow from commercial banks, which has been the practice, ........

..... but rather mobilize the same deposit for onward lending. With the mobilization of deposits for onward lending, the MDIs will be able to Iend at lower interest rates. This will not only boost access to capital for low-income savers and earners but will encourage

....financial inclusion and further spur economic growth.
#PlenaryUg