Professional Documents
Culture Documents
PRESENTED BY
CHARITY NANGILA
STUDENT NO: B/P/077/07
SUBMITTED TO:
MR. DAN NGUMBAO
FI s - Financial Institutions
BFIs - Bank Financial Intermediaries
NBFIs - Non-Bank Financial Intermediaries
ATM - Automated Machines
BOU - Bank of Uganda
KCB - Kenya Commercial Bank
REGIONAL FINANCE INSTITUTIONS
INTRODUCTION
The term financial institution may refer to an institution or firm that performs
intermediation between two or more parties in a financial context. Thus a
financial institution also referred to as a financial intermediary is an
organization that may be either for-profit or non-profit, that takes money
from clients and places it in any of a variety of investment vehicles for the
benefit of both the client and the organization.
FIs are basically two types: Bank Financial Intermediaries, BFIs (Central
banks and Commercial banks) and Non-Bank Financial Intermediaries, NBFIs
(insurance companies, mutual trust funds, investment companies, pensions
funds, discount houses and bureau de change).
FRAMEWORK
• Mutual fund companies have broken into the banking arena. With many
mutual fund companies, you can now write checks against your mutual
fund account.
• Brokerage firms have also gotten into the act. Many brokerage firms now
allow you to write checks, issue credit cards and ATM cards, and make
loans. Brokerage firms offer these and many other account features that
were once reserved for traditional banks.
REGULATIONS
Legal Structure
Within the East African region, financial institutions are either privately
owned (shareholder-owned) or publicly owned (government-owned).
However all are regulated and mandated to operate through the legal
system set by the country. Legislation of the banks and or financial
institution especially in the East African region is mainly administered by the
rules of government which are Acts of parliament and the central bank.
The main role of government and central bank in regard to the legal
structure of financial institutions is:
Responsibility for determining the policy of the Central Bank is given by the
Central Bank of Kenya Act to the Board of Directors. The Board consists of
eight members:-
All members are appointed by the President to hold office for a term of four
years and are eligible for reappointment. In the case of the Governor,
appointment is for a maximum of two terms of four years each and can only
be terminated by a tribunal appointed by the President to investigate his
conduct.
The Central Bank Act and its relations with the Government
The Central Bank of Kenya Act of 1966 set out objectives and functions and
gave the Central Bank limited autonomy. Since the amendment of the
Central Bank of Kenya Act in April 1997, the Central Bank operations have
been restructured to conform with ongoing economic reforms. There is now
greater monetary autonomy.
2. Bank of Uganda
The Bank of Uganda (BOU) is the Central Bank of the Republic of Uganda.
Established in 1966, by Act of Parliament, BOU is 100% owned by the
Government of Uganda, but is not a government department.
The Board of Directors of the Bank of Uganda is the supreme policy making
body of the Bank. The Board formulates Bank policies and ensures that
anything required to be done by the Bank under the statute as well as
anything else that is within or incidental to the functioning of the Bank is
carried out.
The office of Governor and Deputy Governor are public offices where the
Governor and Deputy Governor are respectively Chairperson and Deputy
Chairperson of the Board of Directors.
Other members of the Board (not less than four (4), and not more than six
(6), are appointed by the Minister of Finance for three-year renewable terms.
The Secretary to the Treasury is an ex-officio member of the Board.
The Bank of Tanzania is the central bank of the United Republic of Tanzania.
The bank was established under the Bank of Tanzania Act 1965. However, in
1995, the government decided that the central bank had too many
responsibilities, and was thus hindering its other objectives. As a result, the
government introduced the Bank of Tanzania Act 1995, which gave the bank
the single objective of monetary policy.
The Board of Directors of the Bank of Tanzania (the Bank) is the supreme
policy decision making organ in the institution’s hierarchical structure. The
Board of Directors is responsible for determining policies of the Bank,
approval of its budget and allocation of profits arising from its operations.
The Board consists of ten persons, four of whom are executive directors and
two are ex-officio. In addition, there are four non-executive Directors
appointed by the Minister of Finance.
The Governor and Deputy Governors are appointed by the President for a
period of five years. Their tenure of office is statutorily limited to two five
year terms. Non-executive Directors are appointed by the Union Minister of
Finance for a period of three years, and are eligible for a reappointment.
Ownership
Shares of the stock of Kenya Commercial Bank Group (KCB Group), the
parent company of Kenya Commercial Bank, are listed on the Nairobi Stock
Exchange (NSE), under the symbol (KCB). The Group's stock is also cross
listed on the Uganda Securities Exchange (USE).
Management
The Board of Directors of the KCB Bank are responsible for the strategic
planning of the bank and ensure that anything required to be done by the
Bank under the statute as well as anything else that is within or incidental to
the functioning of the Bank is carried out.
http://en.wikipedia.org/wiki/Bank_of_Uganda
http://personalfinance.byu.edu/?q=node/583
http://www.bot-tz.org/AboutBOT/BOTFunction.asp
http://www.bou.or.ug/bouwebsite/opencms/bou/home.html
http://www.businessdictionary.com/definition/financial-institution.html
http://www.investorwords.com/1950/financial_institution.html
http://www.ehow.com/about_4700299_what-roles-financial-
intermediaries.html
http://www.indianmba.com/occasional_papers/op125/op125.html
http://www.kcbbankgroup.com
http://www.nios.ac.in/srsec319/319-33.pdf