05th April, 2017 -For the sixth consecutive year Stanbic Bank Uganda has won the best primary dealer award beating off stiff competition from six other commercial banks. The accolade is given on an annual basis to the financial institution that has excelled in executing its primary dealer mandate and is the culmination of a very rigorous annual appraisal process by Bank of Uganda.
Presenting the award at a ceremony held at the Central Bank the Governor Prof Emmanuel Mutebile acknowledged the key role Stanbic had played in the market especially for its participation in the primary auctions, market making capabilities, consistent pricing as well as timely market intelligence.
He also recognised the role played by all the other banks who are part of the primary dealer system. “I applaud the contribution of all the primary dealer banks towards the development of the Government securities market and by extension the financial markets in Uganda. Primary dealers have enhanced liquidity in the secondary market whose total turnover increased by 12.5% to Ush 3.6 trillion in 2016 from Ush 3.2 trillion in 2015,” Mutebile said.
Accepting the award on behalf of Stanbic Bank, the Board Chairman Mr. Japheth Katto thanked the entire bank and in particular the global markets team for their sacrifice and dedication. “This is an incredible achievement which is worthy of the highest recognition, it demonstrates the consistency of service delivery within the bank which is key to providing a quality consumer experience,” he said.
Speaking about BOU role within the financial system Mr. Katto appreciated the tireless efforts and contribution Bank of Uganda had made towards development of the sector. He pledged that for its part Stanbic would continue supporting the Governments domestic Debt programme where the bank is the second largest domestic lender to the GoU after NSSF. He also promised to work with BoU and other interbank counterparties to create robust and functional Primary Dealer system which will help to lower the cost of issuing and servicing of public debt. In closing he revealed, “With the conclusion of the Primary dealer shared gateway the Bank is working on an extensive plan to leverage its branch network and come network closer to the public.” “This will increase the Wanainchi participation in Securities Market and help to inculcate a savings culture that is still lacking in our country today”.
The Primary Dealer System aims to promote participation in government securities markets, foster the development of financial markets, 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.
Six commercial banks are currently licensed to operate as primary dealers, however in a bid to bring more participants into the primary market, increase liquidity and make the market more competitive this is set to change. Going forward, all commercial banks will have similar access to the Central Securities Depository (CSD). The banks will be able to open CSD accounts at the BoU for their clients, issue and accept bid submission forms on their client’s behalf, and facilitate their clients’ secondary market transactions. Investors will also access their CSD account statements through their respective commercial banks.
Commenting on the proposed changes Anne Juuko, Stanbic Banks Head of Global Markets said, “This is a welcome development that is certain to stimulate growth of the both the primary and secondary securities markets, as Stanbic we believe increased competition will lower costs and increase market access bringing more Ugandans into the formal financial system, this will have positive knock-on effect on the entire economy.”
