the ongoing recovery in activity is expected to be less intensive in employment, thus boosting productivity. in my opinion, the risks surrounding these inflation projections are balanced. on the one hand, as i have explained, the gradual downward trajectory towards the 2 % inflation target is conditional on the moderation of wage inflation, a recovery in productivity and profit margins continuing to act as buffers to inflationary pressures. if these assumptions do not materialise, inflation would be higher than expected in the baseline scenario. on the contrary, if the effects of monetary policy on activity and inflation are stronger than expected, we could observe a negative deviation of inflation from the target. despite this uncertain geopolitical environment and unequal macroeconomic landscape, european entities have continued to operate robustly. over the last ten years, the banking union was rather unique in terms of risk reduction. despite a series of shocks hitting european economies in recent years, macroeconomic volatility has remained low with the exception of a couple of episodes. first the pandemic ( march 2020 ), then russia's war against ukraine, the energy crisis and, last year, the march 2023 banking turmoil. banks went into these episodes well capitalised, with plenty of liquidity and hence resilient. according to the latest data published by the single supervisory mechanism for the last quarter of 2023, banks have further strengthened their solvency. the average cet1 ratio reached 15. 7 %, 30 basis points ( bps ) higher than the previous year. additionally, 2 / 6 bis - central bankers'speeches the significant increase in ecb reference interest rates has had a very positive impact on banks'financial results, achieving an average return on equity of 9. 3 %, significantly higher than the previous year ( 7. 7 % ) and well above the historical range of 5 % to 6 %. furthermore, this interest rate hike has not yet significantly affected the non - performing loan ( npl ) ratio, which has only experienced a slight increase of 3 bps in the last year, reaching 2. 30 %. on the other hand, liquidity remains robust, maintaining a liquidity coverage ratio of above 160 % and a net stable funding ratio of over 125 %, well above the regulatory requirements. of course, these positive overall figures conceal a much more heterogeneous reality among entities, countries and business models that needs deeper analysis. for instance, we should note that the sharp increase in interest rates has been partially cushion

emmanuel tumusiime - mutebile : welcoming innovations in the ugandan banking sector speech by mr emmanuel tumusiime - mutebile, governor of the bank of uganda, at the launching ceremony of the orient express visa card – orient bank limited, kampala, 1 november 2007. * * * the chairman and board of directors of orient bank ltd. management and staff distinguished guests ladies and gentlemen let me begin by expressing my gratitude for orient bank ’ s invitation to me to preside over this auspicious occasion of launching the orient express visa card. the visa card which orient bank limited is launching today is in line with the orient bank ’ s business theme : “ we care for your financial needs ”. visa is the world ’ s largest retail payments system. its introduction in orient bank will enable the bank ’ s customers to gain access to the visa electron network, which reportedly operates in 150 countries with a network of 27 million outlets. the visa card will enable the customers of orient bank limited to use their debit card worldwide at atms, points of sale terminals and internet. the introduction of this product will therefore go a long way in reducing inherent risks associated with moving around with large sums of money in order to execute business transactions within uganda and beyond the borders of uganda. the orient express visa card can be used to pay for goods and services or withdraw cash from any atm or bank displaying the visa sign. the card acts as a debit card and the customers ’ account will be immediately debited upon completion of the transaction. customers will be asked to complete a simple application form but will not have to pay any fees to acquire the new card. the orient bank is today also announcing the deployment of 250 new point of sale terminals, which will also accept any visa branded cards. the new point of sale terminals also have value added functions, which will enable customers to pay for goods and services, to purchase airtime and mobile telephone top - ups, to pay utility bills and at selected sites, to obtain cash advances. merchants will receive a credit on their collection account at close of business each day for all transactions executed during the day. the new terminals are also able to recognize the new “ chip and pin ” cards, which are gradually being introduced worldwide in order to enhance card security. the orient express visa card can be used at various atms of other banks through visa switching system. this will provide relief to bank customers in the face of the refusal of some banks to join