bank of uganda remarks by prof. emmanuel tumusiime - mutebile, governor, bank of uganda at the breakfast organised by the institute of corporate governance uganda theme : “ governance as a core pillar for economic development ” at sheraton hotel. november 25, 2016 institute of corporate governance of uganda : corporate governance breakfast with the theme “ governance as a core pillar for economic development ” president, institute of corporate governance uganda ( icgu ) the executive of the icgu governing council our host, pwc ladies and gentlemen, good morning i would like to begin by thanking the institute of corporate governance of uganda for inviting the governor to give a key note speech at this breakfast and to commend the institute for the excellent work that it is doing to promote good corporate governance in uganda. the theme of this breakfast is corporate governance as a core pillar for economic development. the link between corporate governance and economic development is probably not intuitively obvious so i will offer you my own perspective on how corporate governance can contribute to development. a key driving force of sustainable development is the harnessing of positive externalities to private sector activities and the minimising of negative externalities. positive externalities occur when social rates of return to investment exceed the purely private rates of return. examples of positive externalities include the spillovers of benefits which occur when firms train workers, invest in research and development and adopt new technologies which generate “ learning by doing ’ benefits. examples of negative externalities include pollution or collusive or abusive manipulation of markets. given that investable resources are scarce, long term development requires that social rates of return are high. hence rapid economic development is more likely to be realised in a society which can enable the private sector to generate high private rates of return to investment while at the same time yielding positive externalities so that social rates of return are even higher. conversely, economic development will be held back if private sector activities create negative externalities, thus depressing social rates of return to investment. why should corporate governance have any impact on positive or negative externalities of private investment? in any firm there is an inherent tension and potential conflict of interest between what are often termed the “ insiders ” of firms – dominant shareholders and senior managers – and the “ outsiders ” who include small shareholders, the creditors of the firm, its employees and customers and the general public. the insiders are those who have actual control over the form, but without effective restraints insiders may abuse their control over the firm

k c chakrabarty : transforming credit information into action – issues and challenges keynote address by dr k c chakrabarty, deputy governor of the reserve bank of india, at the sixth annual credit information conference, organized by cibil – credit information bureau ( india ) ltd –, mumbai, 20 march 2014. * * * assistance provided by shri rajesh jai kanth and ms. jayanthi n. in preparation of this address is gratefully acknowledged. 1. shri m. v. nair, chairman, cibil ; shri r. v. verma, cmd, national housing bank ; shri m. v. tanksale, chief executive, indian banks ’ association ; shri rajiv sabharwal, executive director, icici bank ; shri arun thukral, managing director, cibil ; shri satish pillai, chief operating officer, cibil ; delegates to the conference ; friends from the media fraternity ; ladies and gentlemen! it is a pleasure for me to be present here this morning to deliver the keynote address at the sixth annual credit information conference organized by cibil. it is heartening to note that cibil has completed 10 years of successful operations of its consumer bureau in india. while i congratulate the entire team of cibil on this occasion, i must also sound a word of caution amidst the euphoria that this occasion brings in. it is a time for cibil and indeed for all the credit information companies in the country to introspect and reflect on what the industry has achieved over the last decade and whither to from here? the spurt in the stressed assets in the banking system has put a spotlight on the effectiveness of the credit information companies in the country. with huge increase in the data / information availability, could they have sounded a timely warning about the impending deterioration in the quality of assets in the banking system? 2. as the pioneer of the credit information services in the country and as the most dominant player in the industry, cibil has a very critical role in how industry responds to the current challenges and adapts itself to remain relevant. in the financial services industry, the dominant player has to be much more resilient, much more responsive and much more restrained than others. these are the qualities you must develop. cibil has a tremendous responsibility, a responsibility to not only propagate the usage of credit information by the lenders but, at the same time, of ensuring that the consumers see merits in