KAMPALA — Bank of Uganda has recognised Stanbic Bank Uganda Ltd as the best performing bank in Uganda government securities for the months June and July 2019.
Launched in 2005, the Primary Dealer (PD) system aims to promote participation in Uganda Government securities markets.
It also aims 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.
Governor Emmanuel Tumusiime-Mutebile handed over the award to the Chief Executive Stanbic Bank Patrick Mweheire during the quarterly Uganda Banker’s Association meeting at BoU head office in Kampala
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.
“I wish to acknowledge the role that Stanbic Bank Uganda Ltd has played especially for participating in the primary auctions, market making capabilities, consistent pricing as well as timely market intelligence,” said Governor, Mutebile while handing over the award to Mr. Mweheirwe, Chief Executive, Stanbic bank (U) Ltd., on Wednesday August 21, 2019.
“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,” Mutebile said.
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.
According to a statement from BOU, alongside the retail segment, the participating banks have also enhanced liquidity in the secondary market transactions.
“I would like to applaud the contribution of all the commercial banks towards this marked improvement in the development of the Government securities market, “ Mutebile said.