12 April 2018

Uganda: Stanbic Named Best Govt Dealer Again

Kampala — Bank of Uganda has recognized the best performing bank in Uganda government securities for the Year 2017.

"Ladies and gentlemen, I am pleased to recognize Stanbic Bank Uganda Ltd as the best performing bank in Uganda government securities for the Year 2017. And this makes Stanbic bank the winner for the sixth consecutive year," said Prof. Emmanuel Tumusiime-Mutebile, Governor, Bank of Uganda.

Launched in 2005, the Primary Dealer (PD) system aims to promote participation in Uganda Government securities markets, to foster the development of financial markets, to improve the secondary market trading system as well as to ensure efficiency in the operations related to the Government securities market at the central bank.

Mutebile said as part of the Bank of Uganda's commitment to make investing in Government securities easier and more accessible to the public, the BoU launched Phase I Reforms to the PD System in October 2016 where all licensed commercial banks in Uganda have direct access to the primary market for Government securities.

He said the banks are all eligible to open Central Securities Depository (CSD) accounts at the BOU for their clients through a web interface on any business day. They are all able to accept and process their clients' bids for Government securities. All banks settle their clients' successful bids and all banks can buy their clients' securities if the client wishes to sell in the secondary market.

Mutebile noted that these reforms have eased the client registration process on the CSD as evidenced by increased retail participant registrations, enabling faster and more efficient secondary market trading as all banks can complete client sale and purchase orders online without using the old BoU physical instrument for transferring CSD forms.

He said alongside the retail segment, the participating banks have also enhanced liquidity in the secondary market transactions. Noting that total turnover in the secondary market increased by 29 percent to UGX 5.1 trillion in 2017, from UGX 3.6 trillion in 2016. In the same vein, the ratio of secondary market turnover to the total outstanding stock of Government Treasury securities increased significantly to 41.0 percent in 2017 from 28.9 percent in 2016.

"I would like to applaud the contribution of all the commercial banks towards this marked improvement in the development of the Government securities market. And particularly, I wish to acknowledge the role that this year's award winner has played especially for participating in the primary auctions, market making capabilities, consistent pricing as well as timely market intelligence, " Mutebile said.

Uganda

We're Stuck in Somalia - Ugandan Army Chief

The Chief of Defence Forces, Gen David Muhoozi, has said Ugandan soldiers deployed in Somalia to fight the al-Shabaab… Read more »

Copyright © 2018 East African Business Week. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.