bank of uganda remarks by prof. emmanuel tumusiime - mutebile, governor, bank of uganda the annual primary dealer of the year award ceremony 03 april 2017 the chief executives and senior staff of banks present distinguished guests ladies and gentlemen good afternoon. it is my pleasure to welcome you to the 12th annual primary dealer award ceremony. the primary dealer system aims to promote participation in government securities markets, to foster the development of financial markets, to improve the secondary market trading system as well as to ensure efficiency in the operations related to the government securities market at the central bank. page 2 of 7 primary dealers have contributed to the growth of the government securities market by ensuring high demand during primary market auctions. in 2016, the ratio of primary dealer successful bids in the auctions relative to the rest of the market was 61 percent of all auction bids. the auction bid to cover ratio, which is the total size of bids relative to the amount tendered, for treasury bills and bonds in 2016 averaged 1. 21, indicating that demand for government securities is strong and sufficient to accommodate the needs of government for domestic finance. primary dealers have also enhanced liquidity in the secondary market. total turnover in the secondary market increased by 12. 5 percent to ugx 3. 6 trillion in 2016 from ugx 3. 2 trillion in 2015. page 3 of 7 however, there remain challenges in the distribution mechanism of government securities, and we would like to see more vibrancy in the secondary market. therefore, the bank of uganda ( bou ) has introduced some changes in the way the primary dealership system will operate. going forward, all commercial banks will have similar access to the central securities depository ( csd ). all the banks will be able to open csd accounts at the bou for their clients, issue and accept bid submission forms on their client ’ s behalf, and facilitate their clients ’ secondary market transactions. investors will also access their csd account statements through their respective commercial banks. page 4 of 7 our expectation is that we will have more participants in the primary market and a more liquid, efficient, competitive, and attractive secondary market for government securities. the bou will maintain a consultative approach with the market participants and other stakeholders so as to bring on board constructive initiatives that will further develop the financial markets in uganda. i applaud the contribution of the primary dealer banks towards the development of the government securities market, and by extension, the financial markets in uganda. before

. the competency framework will provide the foundation to guide ibbm in designing and offering relevant management and technical programmes to meet the current and future needs of the banking industry. in addition, the framework would assist academic institutions in aligning their curriculum to meet the industry's needs and to ensure a steady supply of graduates in new growth areas. competency standards set for certification programmes could also serve as a basis for evaluating and accrediting training providers to ensure the provision of top quality training. for the banking workforce, the framework provides a platform for self - assessment to be aware of their competency gaps, and to engage in continuous learning so as to further their careers and keep in tandem with the new demands. the quality of human capital will increasingly become the cutting edge of competitiveness. having competent staff to deliver high quality products and services is critical to building customer confidence and goodwill, driving customer satisfaction, enhancing reputation, and ultimately realising your corporate vision and strategic goals. it is therefore, in the banking institutions'interests to ensure that the competence and professionalism of staff in their industry is further strengthened. the success in developing a robust industry competency framework requires collaborative endeavours among all the parties involved, based on a common vision of an industry which embraces the values of continuous learning and development. the industry competency framework is being developed through a participatory process involving strategic insights and feedback from industry leaders in the country and the region. detailed work is already underway, following the executive interviews which you have participated. your continued strong support, commitment and contributions will be instrumental in ensuring the success of the industry competency framework. with rapid changes taking place in the financial landscape, we need a new generation of professional bankers who are more customer - centric, technology - savvy, more highly qualified, flexible and agile with skill sets that are now more comprehensive than previously. as we prepare ourselves for a more challenging environment, the need to build a competent human capital base with high integrity, right attitudes and work ethics, as well as to maintain a learning environment could not be overemphasised. in realising the goals of a progressive and dynamic financial sector, greater efforts must be directed to building human intellectual capital in a continuous cycle of competency development and enhancement. let me conclude on this note and wish you a most productive discussion session. thank you.