Bank of Uganda has said Barclays Bank Uganda will not be affected by the current scandal rocking its parent company – Barclays Bank England.

Bank of Uganda deputy governor, Dr Louis Kasekende

Barclays Bank England is facing one of its worst financial irregularities for attempting to manipulate the London Interbank Offered Rate, a benchmark for determining interest rates on its global prices for credit card fees and corporate loans among other items.

Speaking at a media briefing in Kampala this week , Dr Louis Kasekende, the BoU deputy governor, said the scandal surrounding Barclays Bank England is likely to have no impact on its Ugandan subsidiary. “The penalties which Barclays Bank England has been ordered to pay will have no major impact on its global subsidiaries such as Barclays Bank Uganda,” he said.

Recently the Financial Times reported that US and UK authorities had slapped Barclays Bank England with a fine of $450 million (about Shs1.1 trillion) for attempting to falsify its London Interbank Offered Rate.

Dr Kasekende said the move was a regulatory measure that excludes Uganda, however, he added that there was need for Uganda to improve effective supervision and regulation of the banking industry.

By Martin Luther Oketh, Daily Monitor