The Bank of Uganda (BoU) on Wednesday recognised Stanbic Bank Uganda as the best performing commercial 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 where treasury bills and treasury bonds are traded.
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.
BoU Governor, Emmanuel Tumusiime-Mutebile handed over the award to the Chief Executive Stanbic Bank Patrick Mweheire during the quarterly Uganda Banker’s Association meeting held at BoU headquarters in Kampala.
Mutebile said as part of BoU’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, Tumusiime-Mutebile.
“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.
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.
The governor applauded banks for their contribution towards the marked improvement in the development of the government securities market.