after we control for talent, college is worth it for most, but not necessarily all, students. part of the reason for the increasing importance of college is a result of what economists call skill - biased technological change. the idea is that the kinds of technologies that are increasingly influencing the workplace tend to favor people with more education. the personal computer, for example, is a great tool that enhances the productivity of people with lots of education, while it may actually be a substitute for unskilled labor. in addition to its effect on earnings, higher education improves one ’ s quality of life by improving other outcomes, like health. even when the large net benefit of college attendance is accurately perceived, there are significant financial constraints on many families ’ ability to finance a college education. after all, the costs of college are concentrated in a few years at the very beginning of a career, while the benefits are spread out over a long period that comes later. borrowing is a natural solution to problems like these, but there is limited enforceability of uncollateralized debt bis central bankers ’ speeches contracts and the private sector may be willing to provide less than the optimal amount to support good educational outcomes. in this environment, even optimal private debt contracts will not account for the second important part of the benefit of higher education : that which accrues to society as whole. better - educated workers are higher paid and so pay more taxes, and they have a lower incidence of dependency on programs like unemployment compensation and welfare. there are positive spillovers from educated workers to others, raising aggregate productivity. better - educated workers produce more innovation and are more civically engaged. in a democracy we are all better off when our fellow citizens understand the issues facing the country. overall, a more skilled workforce is beneficial to us all. in addition, higher education is an important export industry in which the us holds a significant comparative advantage. this produces a better understanding among foreigners of the us and vice versa. all of these social benefits mean that there is an appropriate role for the public sector in helping to finance higher education. the best policy would align the social and private benefits of attending college, and would find a way to relieve the liquidity and credit constraints that families face. finally, the best policy would direct scarce educational resources toward those matches between student and institution that are likely to yield the best educational outcomes. the best matches avoid regrettable dropouts or degrees granted with little to show in the way of educational attainment or

booms. over the last decade new entry and regional economic integration have combined to spur competition in the financial services industry in uganda. furthermore, banks are embracing information technology to offer innovative financial products, such as mobile money, as well as improve the efficiency of their operations. several new banking products are on the market. innovation and growth in the banking market are essential for meeting the needs of consumers and businesses for financial services, but they also generate new sources of risks. bis central bankers ’ speeches traditionally credit risk was the major type of risk facing banks in uganda. the adoption of it increases the importance of operational risk, while the increasing integration of the uganda financial sector into global financial markets, through cross border banking and capital flows, also creates new sources of risk. the evolution of technology has made possible the issuance and innovation of many varied banking products including the visa, mastercard, online banking, mobile money and e - commerce. all these facilitate modern banking. it is a key driver of new banking products like mobile money transfers. today, it innovations have influenced our ways of living in many fields including banking industry and we all benefit from the new technologies. however, the growth of it investments and sophisticated products as well as advanced services in the banking industry comes with a concern on “ security ” and new risks which is the challenging key to propel the sustainability of such growth. what is the role of the central bank in the financial sector? the primary responsibility of the bou is to regulate the financial sector. regulation has two objectives. the first is to protect the interests of depositors. we do this by imposing prudential requirements on banks, under the framework of the financial institutions act ( fia ), 2004 such as minimum capital requirements and liquidity requirements and restrictions on risk taking such as limits on large loan and foreign exchange exposures. we also intervene in distressed banks, again under the framework of the fia, to ensure that banks do not collapse with insufficient funds to repay their deposits. the second objective of regulation is to preserve financial stability ; to prevent financial crises. this also involves ensuring that banks comply with the prudential regulations in the fia. but we are also intending to introduce additional regulatory measures, which are informed by the macroprudential approach that i mentioned earlier, which are aimed specifically at mitigating systemic risks. lessons learnt from the past crises have taught and reminded us not to ignore what adverse effects may come afterwards. admittedly, bou is just catching up with