This table provides metadata for the actual indicator available from Uganda statistics closest to the corresponding global SDG indicator. Please note that even when the global SDG indicator is fully available from Ugandan statistics, this table should be consulted for information on national methodology and other Ugandan-specific metadata information.
| Goal |
Goal 10: Reduce inequality within and among countries |
|---|---|
| Target |
Target 10.5: Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations |
| Indicator |
10.5.1. Financial Soundness Indicators (FSIs) |
| Metadata update |
November 2021 |
| Related indicators |
Not Applicable |
| Organisation |
Bank of Uganda |
| Contact person(s) |
Constance Kabibi |
| Contact organisation unit |
Statistics Department |
| Contact person function |
Head, Quality Assurance and Data Dissemination Section |
| Contact phone |
+256 312 392000 |
| Contact mail |
P.O Box 7120 Kampala |
| Contact email |
statistics_dissemination@bou.or.ug |
| Definition and concepts |
Definitions: Seven FSIs are included as SDG indicators for 10.5.1 and expressed as percent 1 - Regulatory Tier 1 capital to assets 2 - Regulatory Tier 1 capital to risk- weighted assets 3 - Nonperforming loans net of provisions to capital 4 - Nonperforming loans to total gross loans 5 - Return on assets 6 - Liquid assets to short-term liabilities 7 - Net open position in foreign exchange to capital Regulatory Tier 1 capital to assets: This is the ratio of the core capital (Tier 1) to total (balance sheet) assets. Regulatory Tier 1 capital to risk- weighted assets: It is calculated using total regulatory Tier 1 capital as the numerator and risk-weighted assets as the denominator. The data for this FSI are compiled in accordance with the guidelines of either Basel I, Basel II, or Basel III. Nonperforming loans net of provisions to capital: This FSI is calculated by taking the value of nonperforming loans (NPLs) less the value of specific loan loss provisions as the numerator and capital as the denominator. Capital is measured as total regulatory capital. Nonperforming loans to total gross loans: This FSI is calculated by using the value of NPLs as the numerator and the total value of the loan portfolio (including NPLs, and before the deduction of specific loan- loss provisions) as the denominator. Return on assets: This FSI is calculated by dividing annualized net income before extraordinary items and taxes (as recommended in the FSI Guide) by the average value of total assets (financial and nonfinancial) over the same period. Liquid assets to short-term liabilities: This FSI is calculated by using the core measure of liquid assets as the numerator and short-term liabilities as the denominator. The ratio can also be calculated by taking the broad measure of liquid assets as the numerator. For jurisdictions that have implemented Basel III, this indicator could be supplemented with the liquidity coverage ratio. Net open position in foreign exchange to capital: The net open position in foreign exchange should be calculated based on the recommendation of the Basel Committee for Banking Supervision (BCBS). Capital should be total regulatory capital as net open position in foreign exchange is a supervisory concept. Concepts: Regulatory Tier 1 capital to assets: Regulatory Tier 1 capital is calculated based on Basel I, II, or III depending on countries’ supervisory practices. Denominator is total balance sheet (non-risk weighted) assets. Regulatory Tier 1 capital to risk- weighted assets: Regulatory Tier 1 capital is calculated based on Basel I, II, or III depending on countries’ supervisory practices. Denominator is risk-weighted assets also calculated based on Basel standards. Nonperforming loans (NPLs) net of provisions to capital: A loan is classified as NPL when payment of principal or interest is past due by 90 days or more, or evidence exists that a full or partial amount of a loan is not going to be recovered. Only specific loan loss provisions are used in this calculation and they refer charges against the value of specific loans. Data exclude accrued interest in NPLs. Capital is measured as total regulatory capital calculated based on Basel I, II, or III depending on countries’ supervisory practices. Nonperforming loans to total gross loans: A loan is classified as NPL when payment of principal or interest is past due by 90 days or more, or evidence exists that a full or partial amount of a loan is not going to be recovered. The denominator is the total value of the loan portfolio (including NPLs, and before the deduction of specific loan- loss provisions). Return on assets: The numerator is annualized net income before extraordinary items and taxes. The denominator is the average value of total assets (financial and nonfinancial) over the same period. Liquid assets to short-term liabilities: Core measure of liquid assets includes currency and deposits and other financial assets available on demand or within three months. Broad measures equal core measure plus securities traded in liquid markets that can be converted into cash with minimal change in value. The denominator is short-term elements of debt liabilities plus net (short-term) market value of financial derivatives position. The latter is calculated as financial derivatives liability position minus financial derivative asset position. Short-term refers to three months and should be defined on a remaining maturity basis. If remaining maturity is not available, original maturity can be used as an alternative. Net open position in foreign exchange to capital: The net open position in foreign exchange equals the foreign-currency and foreign-currency linked element of balance sheet assets and off-balance sheet exposures minus the foreign-currency and foreign-currency linked element of balance sheet liabilities and off-balance sheet exposures. Foreign-currency-linked instruments refer to accounts denominated in national currency, but their payments are linked to exchange rates, thus subject to foreign exchange risk. The denominator is total regulatory capital as defined above. |
| Unit of measure |
Percent |
| Classifications |
Financial Soundness Indicators Compilation Guide, Basel Regulatory Framework for Bank Supervision |
| Data sources |
Administrative data. The indicators are collected on a quarterly basis. Information is collected from all financial institutions supervised by the central bank and compiled to produce the indicators. |
| Data collection method |
The data is collected through quarterly returns provided by the financial institutions and is submitted to the central bank electronically |
| Data collection calendar |
Every quarter for the data referring to the previous quarter. |
| Data release calendar |
Released to the public with a quarter’s lag. |
| Data providers |
Financial institutions supervised by the Bank of Uganda |
| Data compilers |
Financial Stability Department in the Bank of Uganda |
| Institutional mandate |
The Uganda Bureau of Statistics (UBOS) is responsible for collecting, compiling, analyzing, and disseminating national statistics. Section 21 of the Uganda Bureau of Statistics Act, 1998 empowers it to delegate authority to other institutions to compile and disseminate specified statistical data. There is a Memorandum of Understanding (MOU) signed between UBOS, the BOU, and the Uganda Revenue Authority (URA), in which UBOS delegated to the BOU the power to collect, compile, and disseminate monetary and external sector statistics. Therefore, the Bank of Uganda collects data and compiles the Depository Corporations Survey under permission from the Uganda Bureau of Statistics. The activities of the Bank of Uganda are governed by the Bank of Uganda Act, 2000. With regard to data compilation, Article 40, subsection 1 of this Act requires that “every financial institution shall furnish to the Bank in a manner prescribed by statutory instrument all information that may be required by the Bank for the proper discharge of its functions”. Data dissemination functions are granted to BOU by Article 40 subsection 2 which states that “the Bank may publish in whole or in part information furnished to it under subsection 1 as the Board may determine” |
| Rationale |
Regulatory Tier 1 capital to assets: It is a more stringent version of the leverage ratio and indicates the extent to which assets are funded by other than own funds and is a measure of capital adequacy of the deposit-taking sector. Regulatory Tier 1 capital to risk- weighted assets: It measures the capital adequacy of deposit takers based on the core capital concept of the Basel Committee on Banking Supervision (BCBS). Capital adequacy and availability ultimately determine the degree of robustness of financial institutions to withstand shocks to their balance sheets. Nonperforming loans net of provisions to capital: This FSI is a capital adequacy ratio and is an important indicator of the capacity of bank capital to withstand losses from NPLs that are not covered by specific loan loss provisions. Nonperforming loans to total gross loans: This FSI is often used as a proxy for asset quality and is intended to identify problems with asset quality in the loan portfolio. Return on assets: It is an indicator of bank profitability and is intended to measure deposit takers’ efficiency in using their assets. Liquid assets to short-term liabilities: It is a liquid asset ratio and is intended to capture the liquidity mismatch of assets and liabilities and provides an indication of the extent to which deposit takers can meet the short-term with drawal of funds without facing liquidity problems. Net open position in foreign exchange to capital: This FSI is an indicator of sensitivity to market risk, which is intended to gauge deposit takers’ exposure to exchange rate risk compared with capital. It measures the mismatch of foreign currency asset and liability positions to assess the vulnerability to exchange rate movements. |
| Comment and limitations |
Data for Uganda is reported on a monthly and quarterly basis for some of the items. Where compilation practices deviate from the FSI Guide methodology in certain areas, those differences are documented in the FSI metadata which is also posted on the IMF’s FSI website. Uganda provides all core FSIs and some encouraged FSIs that can be used to support the interpretation of these seven SDG indicators. |
| Method of computation |
The indicators are calculated based on data collected directly from the financial institutions and consolidated by the central bank. The formula to obtain these indicators are: Regulatory Tier 1 capital to assets = Core capital (Tier 1) / total (balance sheet) assets. Regulatory Tier 1 capital to risk- weighted assets = Total regulatory Tier 1 capital / Risk-weighted assets. The data for this FSI are compiled in accordance with the guidelines of either Basel I, Basel II, or Basel III. Nonperforming loans net of provisions to capital = Nonperforming loans (NPLs) less specific loan loss provisions / Capital. Capital is measured as total regulatory capital. Nonperforming loans to total gross loans = Nonperforming loans (NPLs) /Total Gross Loans. Return on assets = Annualized net income before extraordinary items and taxes (as recommended in the FSI Guide) / Total assets (financial and nonfinancial). Liquid assets to short-term liabilities = Liquid assets / Short-term liabilities The ratio can also be calculated by taking the broad measure of liquid assets as the numerator. Net open position in foreign exchange to capital = Net open position in foreign exchange (calculated based on the recommendation of the Basel Committee for Banking Supervision (BCBS)) / Total regulatory capital The common source data are data reported by banks to supervisory authorities, which are usually the FSI compilers |
| Validation |
The return which is submitted by financial institutions to the central bank has built-in consistency checks to help data providers’ identify inconsistencies in data reporting. Once the data is reported to the bank, it undergoes a round of automated validation checks. If any inconsistency is detected, the Financial Stability Team engages with the financial institutions for clarifications or adjustments to the data provided. |
| Methods and guidance available to countries for the compilation of the data at the national level |
The FSI Compilation Guide (2019) available at http://data.imf.org/FSI. |
| Quality management |
The FSIs return has built-in consistency checks to help data reporters’ spot inconsistencies in data reporting. Once the data is reported to the central bank, it is consolidated, and it undergoes careful review by the Financial Stability team. Analytical work on the reported data also aids spotting and correcting inconsistencies in the data, if any, by the compilers. |
| Quality assurance |
The common source data are data reported by banks for supervisory purposes. The national FSI compilers check and validate the data that is submitted by the financial institutions prior to consolidation. Any issues flagged by the validation and consistency checks, are resolved with the data providers. |
| Quality assessment |
The quality of the source data for the indicators is vetted through other datasets provided by the financial institutions to ensure that the data is coherent. Furthermore, any deviations from the methodology or fluctuations are reported to IMF in the metadata, which is available on the FAS data portal. |
| Data availability and disaggregation |
Description: Uganda reports on all core FSIs and some encouraged FSIs that can be used to support the interpretation of these seven SDG indicators. Time series: Data is reported on a quarterly basis. Data are available as far back as 2005 for Uganda. Disaggregation: The FSIs disseminated by the IMF are weighted averages for the sector as a whole (e.g., deposit takers, other f inancial corporations, nonfinancial corporations). Data for parent banks, their branches, and relevant subsidiaries are consolidated; if this consolidation is not possible or not applicable, an explanation is provided in the metadata. There are no disaggregated breakdowns of the FSIs reported to the IMF. |
| Comparability/deviation from international standards |
The FSIs compiled by the Bank of Uganda are based on the FSI Compilation Guide, which provides the guidance on the concepts and definitions, and sources and techniques for the compilation of cross-country comparable data to support national and international surveillance of financial systems. To facilitate identification of possible discrepancies across countries, metadata is provided to explain any departures from recommendations in the FSI Guide |
| References and Documentation |
URL: http://data.imf.org/FSI References: FSI Compilation Guide http://data.imf.org/FSI |
| Metadata last updated | Feb 12, 2026 |