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Bank of Uganda (BoU) has said high staff turnover in some supervised financial institutions remained a key challenge in the year ended June 2024.

The details, which are contained in the Bank of Uganda 2024 Annual Report, indicate that high staff turnover, which has remained unique to some financial institutions, was among some of the systemic challenges that continue to present challenges to the stable operation of the banking sector.

“BoU conducted onsite examinations at several [supervised financial institutions and] identified idiosyncratic challenges in some [supervised financial institutions] … the examinations revealed critical systemic challenges … some [supervised financial institutions] continue to experience high staff turnover rates, which undermines operational stability as well as institutional knowledge,” the report reads in part.

The Central Bank also revealed that in its onsite examination of supervised financial institutions for the year ended June, it had further found critical challenges in some institutions, particularly in risk management, corporate governance, audit processes, and strategic planning, noting that it would continue to engage individual supervised financial institutions facing challenges to develop tailored strategies for improvement that will have specific and time-bound directives to support them in addressing identified challenges.

“These findings highlight the urgent need for ongoing strategic planning, comprehensive risk management enhancements, and stronger governance across all [supervised financial institutions] to ensure long-term resilience and stability,” the report read in part, further noting that the Central Bank had prescribed appropriate targeted remedial measures to enhance banking sector resilience.

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