% of value added. and precisely these enterprises finance themselves almost exclusively via the domestic banking sector. in most countries, however, the majority of loans to enterprises are granted by only a few banks. that makes the economy vulnerable towards, and dependent on, this sector. in the united states, on the other hand, it is quite usual for enterprises to obtain money directly from the capital market. and not necessarily in the state in which they have their headquarters. this form of corporate financing makes the economy much less vulnerable towards any problems in the banking sector. it is, however, significantly underdeveloped in europe. in a monetary union one should also expect a fully integrated capital market. that would mean, for example, that a creditworthy entrepreneur from osnabruck could issue a bond without any problems in the netherlands. or an entrepreneur from lisbon could do the same in france. after all, france, portugal, the netherlands, germany and 15 other countries share the same currency. a truly integrated capital market would not only benefit the european economy because it would ensure an efficient and location - independent allocation of financial resources. it would also bring with it a greater distribution of risk. first, spreading risk means striving for a balanced financing mix. if europe ’ s enterprises do not principally finance themselves with bank loans but also with, for example, corporate bonds, the economy can still prosper when banks are rather hesitant in their lending. currently in europe, however, only around 20 – 50 % of debt financing takes place in capital markets. by comparison, in the united states it is around 80 %. now, we cannot expect to have a completely new financing mix in europe from one day to the next. that is why a healthy banking sector remains a prerequisite for smes to be able to access loans. over the medium to long term, however, the desire is not to have to rely on this sector alone, but to foster alternative methods of financing, for example by appropriately regulating the securitisation market. second, spreading risk means that financial markets within a monetary union should actually function independently of national borders. economic shocks can then be better absorbed because countries receive a certain amount of protection from the private sector. if, for example, part of a country ’ s assets are held by foreign investors, these investors will also bear a share of the consequences of an economic shock. such shocks thus have a reduced impact on the domestic economy. a country can also reduce its vulnerability to shocks

bank of uganda remarks by louis kasekende ( phd. ), deputy governor, bank of uganda … … … … … … … … …. at the supervisory college of standard chartered bank, africa region … … … … … … … … …. kampala ; november 10, 2016 speech by the deputy governor at the supervisory college of standard chartered bank, africa region held at the speke resort hotel munyonyo on thursday, november 10, 2016 executive director supervision, bank of uganda the prudential regulation authority officials, the host supervisors of standard chartered bank from the african region, directors and senior management of standard chartered bank from the african region, staff of the bank of uganda distinguished guests, ladies and gentlemen, bank of uganda is greatly honoured to have been given the opportunity to host this supervisory college for standard chartered bank, africa region in conjunction with the prudential regulation authority ( pra ). i warmly welcome you all to uganda, the pearl of africa. i trust that during your short stay here you will truly experience the warmth and hospitality of the ugandan people. the decision regarding the venue for this college came to fruition as a result of a deliberate and keen interest by the prudential regulation authority ( pra ) to deepen their understanding on the role played by standard chartered bank in the african economies and risks associated with the businesses. to this end, bank of uganda ( bou ) graciously accepted to host the first college when the prudential regulation authority proposed the idea of convening a supervisory college for subsidiaries of standard chartered bank in africa. i wish to highlight that standard chartered bank uganda ( scbu ) has been operating in uganda for over 100 years, having opened for business in 1912. the bank currently has eleven branches and 28 automated teller machines ( atms ) and is considered a domestic systemically important bank ( d - sib ). as at june 30, 2016, the bank commanded a market share of 11. 58 percent, 11. 42 percent and 12. 00 percent in terms of total assets, total deposits and total loans, respectively. standard chartered bank uganda has greatly contributed to uganda ’ s economy, both financially and in technological innovations in the ugandan banking sector. it is ranked amongst uganda ’ s top twenty tax payers and has won a number of awards including employer of the year 2013, best in corporate social responsibility 2014 and best consumer internet bank 2013, amongst others. as a leader in technological innovations in the