' speeches also, we collaborated with the uganda bankers'association ( uba ) to develop and establish the industry esg framework for the banking sector, including an esg reporting template and indicators we are launching today. you may recall that in october 2022, we conducted a survey to understand the financial sector's approach to esg sustainability. while a strong interest was evident - with nearly all institutions responding - a lack of consistency emerged. esg's meaning varied, with a focus primarily on inclusivity and environmental issues. this highlighted the need for clear direction. to achieve measurable progress and assess the industry's impact, a unified approach with policy guidance and capacity building is crucial. the industry esg framework directly addresses this need. it promotes a holistic and harmonized approach, ensuring measurable benefits for the sector and, ultimately, economic transformation. this framework signifies our commitment to embedding esg principles within the financial sector, driving positive change. the framework will guide our sfis in embedding esg principles into their governance structures, risk management processes, product offerings, and reporting practices. it will foster transparency, accountability, and a shared understanding of our sustainability commitments. the framework offers a unified approach for esg integration across the banking sector. however, individual institutions seeking international sustainability certification are strongly encouraged to do so. this pursuit strengthens sustainability efforts and enhances the resilience of sfis. as you are aware, this esg framework we are launching today is a culmination of extensive consultations and benchmarking against international standards and best practices. it has been contextualized to the ugandan environment, laying a strong foundation for achieving the sustainability goals of the banking sector. as we forge ahead on this transformative journey, successful implementation of the esg framework requires our collective commitment and collaboration. it is imperative that we : develop an esg taxonomy : establish a credible and transparent common language defining sustainability in our sector, addressing the risk of greenwashing. continuously review the esg framework : ensure its relevance and alignment with the dynamic operating environment. standardize esg reporting : create a reporting framework that sets clear requirements for institutions based on esg maturity, aiming for standardization across all banks. with the support of our partners, including abi finance, in developing comprehensive curricula and the uganda institute of banking and financial services ( uibfs ) in training, we can gain the momentum needed for successful implementation. 2 / 3 bis

depreciation. finally, recently, the dollar has strengthened against the major currencies as a result of expectations that america will be the first among the industrialized countries to raise interest rates. financial sector the latest quarterly data available is for september 2014 and this indicates that the banking system is financially very sound and well capitalized. asset quality has improved. the nonperforming loan ratio has declined from 6. 2 percent of the loans in march 2014 to 5. 3 percent of the loans in september 2014. banks ’ profitability has reduced partly as a result of loan provisioning and a slight drop in the net interest margin. the banks ’ total regulatory capital position remains very strong at 22. 5 percent of risk weighted assets as at end of september 2014 which is almost double the statutory minimum of 12 percent. the banking systems ’ bis central bankers ’ speeches average return on assets and equity declined to 2. 2 percent and 13. 1 percent respectively in the year to september 2014 from 3. 1 percent and 18. 8 percent in the previous 12 months. private sector credit with regard to private sector credit growth, since the start of 2014, private sector credit has recovered with annual growth increasing to 13 percent as of end of september 2014. the building and construction sector, trade and household loans continued to account for the bulk of the ps credit. the three sectors together ( building and construction sector, trade and household ) accounted for over 55 % of banking systems ’ outstanding credit to the private sector since february 2014. annual growth of ps credit during 2014 / 15 is projected at 15 percent. bis central bankers ’ speeches