Emmanuel Tumusiime-Mutebile: Promoting suitable and cost-effective
financial services in Uganda
Speech by Mr Emmanuel Tumusiime-Mutebile, Governor of the Bank of Uganda, at the
official opening of Crane Bank's new branch at Entebbe airport, Entebbe, 16 May 2013.
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The Chairman Board of Directors, Crane Bank Ltd. and all Directors present
The Managing Director, Senior Management and all Staff of Crane Bank Ltd
All invited Guests in your respective capacities
Ladies and Gentlemen
It gives me great pleasure this morning to preside over the official opening of a new branch
for Crane Bank Ltd at Entebbe Airport.
Let me start by congratulating the Shareholders, Board of Directors, Management and Staff
of Crane Bank Ltd for the commendable job of instituting and implementing an expansion
programme designed to increase the bank's outreach. This programme will ensure delivery
of financial services nearer to the people which is a fulfillment of the bank's philosophy.
The opening of this branch brings the total number of Crane Bank branches to twenty eight
(28). This constitutes an important step towards the bank's strategic target to open
50 branches by 2014. During its eighteen (18) years of existence, Crane Bank has been able
to extend its footprint to key towns of Uganda. The branches are consistently branded which
conveys the bank's corporate image as a local Ugandan Bank.
I am pleased to announce that Crane Bank Ltd has been granted permission to open a fully
owned subsidiary in Rwanda and there are plans to expand business to the Democratic
Republic of Congo and South Sudan. This is a clear demonstration that the Board of
Directors and Senior Management of Crane Bank Ltd are committed to providing savings
delivery outlets within the great lakes region to spur growth and support the integration
process. Moreover, the presence and sound operation of a Ugandan bank abroad will boost
Uganda's reputation in the region.
Entebbe Airport is strategically located as the gateway to the country and a home for many
Government Departments, NGOs and regional organizations. This branch therefore provides
an excellent business opportunity for the bank and a convenient service to its potential
customers.
Bank of Uganda will continue to support financial institutions in mobilizing savings to grow
the economy but this can only be achieved when customers have access to suitable and
cost-effective financial services. Bank of Uganda is also committed to increasing the level of
financial inclusion in the country through the expansion of service outlets. Indeed, the
promotion of financial literacy, consumer protection and financial innovations like Mobile
Money Financial Services and Agent Banking constitute critical elements of expanding
financial access. In addition, I would like to highlight to the Crane Bank management that
being located at Entebbe airport brings additional responsibility in the area of customer
service standards and national image. For a new visitor to Uganda, often this branch may
just be the first port of interaction with our country
The banking sector today is characterized by heightened competition and increased risks.
This requires financial institutions to continuously innovate to keep pace with the evolving
risks. I am happy to note that Crane Bank (U) Ltd has steadily improved its service delivery
and rolled out new products to meet the changing needs of the clientele. I urge Crane Bank
(U) Ltd. to design robust risk management processes and internal controls to mitigate
increased risks.
In addition to proximity of financial services, another key factor which drives growth in the
lending business of banks and therefore, financial access in Uganda is that of affordability of
credit. Bank of Uganda has for the fifth time kept the Central Bank Rate (CBR) unchanged at
12 present having contained the inflation momentum as reflected in the drop of the headline
inflation to 3.4 present in April from 4.0 present in March 2013. A neutral monetary policy
stance was maintained by the central bank in order to boost economic activity further. Going
forward, the core inflation rate is projected to stabilize around the 5 present medium term
target. In view of this, let me take this opportunity to once again urge banks to align lending
rates with the CBR and facilitate the stimulating effects that are intended from BOU's
monetary policy stance to be channelled to the economy.
With these remarks, I commend the Board of Directors and Management of Crane Bank Ltd.
for their demonstrated commitment to serving the people of Uganda and beyond.
It is now my honour and pleasure to declare Crane Bank Ltd Entebbe Airport branch officially
open for banking business.
Thank you.