. in this endeavour, the onus is on the east african central banks to ensure we contribute to the achievement of a monetary union within the stipulated timeframe. we have to play our role in terms of monetary policy formulation and management through contributing to the east african regional economic harmonisation and convergence programmes. it is in this context that the 16th east african central banking course, which bank of uganda is happy to host, has been organised. i am confident that the programme provides you a unique opportunity to gain a more comprehensive understanding of central banking. you should be able to appreciate better the role of our central. banks in terms of fostering price stability and a sound financial system that enables macroeconomic stability, economic growth and poverty eradication in our region. a case in point is coverage of various financial markets and payment systems which should go a long way in enabling you to appreciate the role our central banks play in investment and trade on which our governments have placed emphasis. the programme also provides you an opportunity to interact and exchange ideas, not only while on the course but also when you return to your respective offices. this networking is extremely important in the development process in our region. we expect you to advance it further. it is also important for you to note that you are being prepared for higher responsibilities in your respective central banks and also at the regional level as far as enhancing monetary policy harmonisation and convergence are concerned. you must appreciate that the monetary union, on which we are targeting, will be a joint effort of managers like you who have been specially prepared for the task. i urge you to seize the opportunity to learn and be better prepared to give quality service to your respective institutions, your countries and the wider east african sub - region. i further urge you to share experiences, learn from one another and acquaint yourselves with the socio - economic opportunities that exist in the country. there is no doubt in my mind that you will accord the course the seriousness it deserves for the good of our region. ladies and gentlemen, with those few remarks, it is my sincere honour and pleasure to declare the course officially open.

##tization would, in their words, “ limit the amount of money created. ” yet, as i suggested earlier, the g - m proposal itself might constrain securitization in undesirable ways, both related and unrelated to repo transactions. in addressing the franchise value issue, it would be interesting to pursue an important idea that g - m mention, but which is not at the center of their proposal : making the repo bankruptcy exception available only where the collateral conforms to certain criteria established by law or regulation. given the demand for repo funding, it seems worth considering whether this device could be used to create the necessary franchise value. indeed, if this approach had promise, it might be feasible for a regulatory body to establish the requisite criteria without providing insurance. with or without insurance, the “ franchise value ” might attach more to the instrument than to an institution. there is not time here to enumerate the potential difficulties with these ideas, but they are not hard to discern, even as stated in such skeletal form. in common with the g - m proposal, they would require a level of expertise and involvement in credit rating by the government that could pose practical and, in some conceivable alternatives, policy concerns. in any case, these are thoughts for further discussion, rather than developed options. gary gorton and andrew metrick have, in setting forth this proposal, continued to shape our understanding of the role and risks of the shadow banking system, as well as to add a specific proposal to our menu of possible responses.