of cards on the pos as debit cards. in this regard, bankom must work closely with supermarkets, petrol stations and other outlets to install point of sale machines throughout the country. at this point, in order to help those who are tempted to doze off, i must quote ogden nash ; “ most bankers dwell in marble halls which they get to dwell in because they encourage deposits and discourage withdrawals. and particularly because they observe one rule which woe betides the banker who fails to heed it. which is that you must never lend money to anybody unless they don ’ t need it ”. micro - finance sector : i will now say something about the tremendous developments taking place in the micro - finance sub - sector which developments seem to be unrecognized by observers of the financial sector. overall, the country has about 500 microfinance institutions operating either as community based organizations or ngos, virtually covering the whole country. in the year 2003, parliament passed the micro - finance deposit - taking institutions act, 2003 ( mdi act, 2003 ). the mdi act regulates only those micro - finance institutions that take deposits from the public essentially because there is a public interest in protecting depositors ’ money and those micro - finance institutions which do not take deposits from the public can be well governed by the laws under which they have been licensed to operate. the implementing regulations of the mdi act 2003 were gazetted in 2004. during the year, bank of uganda licensed m / s finca uganda ltd ( mdi ) as the first micro - finance institution to be supervised by the central bank under the act. i know that there are several other applications being processed in the bank of uganda and i want to encourage many other operators to study the benefits to be derived from taking deposits and to apply for licenses. the major challenges facing this sub - sector are bad corporate governance and limited outreach. the financial institutions act, 2004 : the banking sector is strong and is poised to remain so because the regulatory framework governing financial institutions has been further strengthened. the financial institutions act, 2004 ( fia, 2004 ) was enacted and became effective early 2004. the implementing regulations in respect of fia 2004 have already been approved by the minister of finance, planning and economic development and they will soon be gazetted. the new law, coupled with strengthening of bank supervision, have enhanced capacity for supervision and strict prudential regulation of financial institutions. the fia, 2004 strengthened the regulatory framework of the financial sector

speech good, bad and hopeful news : the latest on the supervision of climate risks keynote speech by frank elderson, member of the executive board of the ecb and vice - chair of the supervisory board of the ecb, 10th annual conference on bank steering & bank management at the frankfurt school of finance & management frankfurt am main, 22 june 2022 i understand that today ’ s audience includes managers and experts from banks and banking associations, supervisors, academics and students. so this is an ideal platform for exchanging views on the financial sector ’ s role in addressing the risks of the ongoing climate and environmental crises. conferences like these are a chance to inform each other of what we are doing and to share the knowledge and expertise we are accumulating to gear ourselves to a world that is already undergoing a climate crisis. physical and transition risks from climate change and environmental degradation are already materialising all around us. today i will update you on the recent progress on both the international agenda and the ecb ’ s own supervisory agenda on climate - related and environmental risks, or c & e risks for short. i will share some preliminary findings from our review of how banks incorporate c & e risks into their risk management practices. there will be good, bad and hopeful news. the good news is that, one year after my first speech on the state of c & e risk management by euro area banks as vice - chair of the ecb ’ s supervisory board, banks are starting to progress in their management of these risks. the bad news is that this progress is not across the board, and laggards remain in all areas. but there is hopeful news too. the silver lining is that the state - of - the - art governance and risk management practices now being adopted by some banks confirm that what the ecb is asking is possible. we just need all banks to do it. the new basel committee on banking supervision principles for the effective management and supervision of climate - related financial risks all around the world, there is a growing consensus on the urgency of dealing with the climate and environmental crises. for banks, the prominence of c & e risks is significant, too. during various supervisory exercises recently conducted by the ecb, most banks recognised that they have significant exposures to these risks, which they expected to materialise in the short to medium term. and we see that banks are consequently allocating more and more financial and human resources to managing these risks. and this is what supervisors around the world expect from