bank of uganda remarks by louis kasekende ( phd. ), deputy governor of the bank of uganda launch of the 10 - year capital markets development master plan kampala, serena hotel thursday june 15, 2017 the chief guest, h. e the president of the republic of uganda, the hon. minister of finance, planning and economic development, cabinet and state ministers, hon. members of parliament, the chairman, cma board, chairman, the capital markets masterplan steering committee, distinguished guests, ladies and gentlemen, good morning. i am delighted to be here this morning to participate in the launch of the capital markets development master plan. i am speaking on behalf of the governor of the bank of uganda, prof. emmanuel tumusiime - mutebile, who is unable to be here due to personal reasons. i would also like to point out that the governor is the chairman of the financial markets development committee ( fmdc ). this committee was set up to steer the development of the financial sector and to ensure that the sector maximizes its contribution to the economy. the fmdc coordinates reforms across the banking, capital markets, insurance and pensions sectors. the premise behind the creation of the fmdc in 2008 was the recognition of the vital and varied roles which the financial system must perform to support economic development. in essence, the financial system must mobilize savings from households and corporations, and allocate those savings to a variety of economic agents which can put them to productive use. in addition, the financial system must also provide other financial services which are needed in a modern economy, such as payments and insurance services. savings are a scarce resource in a developing economy like ours ; hence it is essential that the process of allocating these savings – sometimes referred to as intermediation – is very efficient. as demands for investable funds far outstrip their supply, the task of the financial sector is to ensure that these scarce resources are allocated only to those firms and households which are best able to use them productively and, in doing so, to generate income for the savers who have provided the funds ; for example in the form of interest or dividends. for practical reasons, a market based financial system, driven by the profit motive, is much more likely to generate efficient allocations of scarce financial resources than a system characterized by state controls, although that does not obviate the need for appropriate prudential regulation, by institutions such as the bank of uganda and

eu in the face of current uncertainties and in preparation for future challenges. the euro area ’ s resilience in 2016 despite a range of negative shocks shows that we are on the right track. it also suggests that reforms at national and european level are paying off in terms of economic growth. as the economic situation improves, and even though challenges in other policy realms have 3 / 4 bis central bankers'speeches understandably been the recent focus of our attention, we should not stop our efforts to make emu more resilient and prosperous. we can and should address the remaining, well - identified fragilities at national and european level. on the latter point, i look forward to the continued support of the european parliament in the second half of this legislative term. thank you for your attention. i am now at your disposal for questions. 1 see the full text of the treaty on european union 4 / 4 bis central bankers'speeches