Stanbic Bank is best primary dealer in 2017

Stanbic Bank Uganda for the sixth consecutive year has emerged the best performing bank in Uganda government securities in 2017.
“Ladies and gentlemen, I am pleased to recognize Stanbic Bank Uganda Limited 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 Bank of Uganda (BOU) Governor Prof. Emmanuel Tumusiime-Mutebile yesterday in Kampala.
Mutebile lauded Stanbic Bank for the role it has played, “especially for participating in the primary auctions, market making capabilities, consistent pricing as well as timely market intelligence.”
He also applauded the contribution of all the commercial banks towards the marked improvement in the development of the Government securities market. BOU records show Uganda has over 20 commercial banks.
The participating banks, Mutebile said, have also enhanced liquidity in the secondary market transactions where total turnover in the secondary market increased by 29 per cent to Shs5.1trillion in 2017, from Shs3.6 trillion in 2016.
In the same vein, he said, the ratio of secondary market turnover to the total outstanding stock of government treasury securities increased significantly to 41.0 per cent in 2017 from 28.9 per cent in 2016.
This is the 13th time BOU has held such an event.
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.
Both Treasury bills and Bonds are traded on the primary market for new issuances (the first hand market), and on the secondary market for existing bonds (Second hand bonds). Treasury bills auctions are held fortnightly (every two weeks) while Treasury bonds occur according to a timetable issued by the Bank of Uganda.
Who can participate in government securities? They include commercial banks, Insurance companies, Private companies, government agencies, pension funds, individuals (of at least 18 year-old), primary dealer banks and offshore investors.