central bank of chile july 2020 “ the chilean peso as an eligible cls currency : second workshop cls - cbc ” opening remarks by mario marcel, governor of the central bank of chile july 21st, 2020 – santiago, chile ( via webex ) i. welcoming remarks good morning everybody and welcome to the second joint workshop between cls and the central bank of chile ( cbc ) dedicated to the “ nostro ” service, a fundamental business in the cls payment system operation. this event is part of the process of incorporating a new currency into the cls system. this belongs to the due diligence and analysis phase that cls and the cbc are respectively finalizing. then we should move to the implementation phase. this workshop complements the provision of information on cls and the bilateral meetings that bankers have been holding with cls and the cbc for some time, to assist banks in assessing the benefits, prospects and opportunities in participating in the system, either as a settlement member or nostro. i am looking forward to the banking sector ’ s active participation in this workshop that features representatives of the nostro banks and cls experts. ii. the chilean peso incorporation process • the process of incorporating the chilean peso in cls, started last year when we sent the letter of intention to cls to demonstrate our commitment to the process and initiate the engagement stage. • after the change in our legislation in 2016, which established the finality of payment irrevocability on a legal level, we felt it was timely to resume previous conversations with cls. our legislation now should fully meet all the high standards and requirements for the peso to operate in cls. • after demonstrating our interest to cls, i met personally with the vice - governor of the federal reserve board to express our interest. the federal reserve board and the new york fed are respectively in charge of the regulation and supervision of cls, hence the importance of their opinion about the benefits and performance of the system. besides, the fed presides the oversight committee along with 23 central banks representing the 18 currencies that settle in cls. then, it was important for us to show our commitment with the process in order to be part of this committee once the peso is incorporated. • we subsequently moved on to the due diligence stage last july 2019, when together with cls we held the first workshop at the cbc for the private sector. iii. benefits of the cls

bank of uganda key note address by louis kasekende ( phd ) deputy governor, bank of uganda at the 7th annual international leadership conference organized by makerere university business school ( mubs ) topic : governance in the financial sector : is the financial sector over regulated? entebbe, uganda november 29, 2017 heads of regulatory bodies within uganda ’ s financial sector, the principal, makerere university business school ( mubs ) invited guests, ladies and gentlemen, good morning. i would like to begin by commending the makerere university business school for organising this international leadership conference and by thanking the principal of the business school, prof. balunywa, for inviting me to give a keynote address. the theme of my address this morning is financial regulation. i want to explore the objectives and the economic rationale for regulating the financial sector. i will then address the question of whether the financial sector is over regulated in uganda. what is the rationale for regulation of the financial sector? throughout the world, in both developed and developing countries, the financial sector is one of the most heavily regulated sectors of the economy. many types of financial institutions are subject to a raft of regulations, such as capital requirements, restrictions on their business activities and financial disclosure requirements which are not applied to most other types of business. for the most part, non - financial sector businesses, such as manufacturing, construction or agriculture, are subject to health and safety standards to protect their employees and some minimum product standards to protect their customers. however, apart from that, the governance of their business activities is left to the market and is not subject to regulation by a public agency. why is the financial sector different? there are two fundamental reasons why the financial sector is much more highly regulated than other sectors of the economy : leverage and information. the combination of high levels of leverage in financial institutions and informational imperfections provide a prudential rationale for financial sector regulation which is not relevant for non - financial sector businesses. many types of financial institutions are highly leveraged ; their borrowings – their debt liabilities – are a multiple of their capital, in contrast to most nonfinancial sector businesses. the ugandan business sector as a whole has equity and reserves which are almost as large as its debt liabilities. 1 in contrast, the ugandan banking industry has debt liabilities ( mainly deposits ) which are almost five times larger than its equity and reserves. this means that if a bank fails, the consequences