louis kasekende : bank of uganda ’ s instruments to respond to inflationary pressures remarks by dr louis kasekende, deputy governor of the bank of uganda, at a dinner hosted by dfcu bank, kampala, 5 may 2011. * * * the chairman and board of directors of dfcu bank limited ; senior management of dfcu bank limited ; chief executives of various institutions ; distinguished guests ; ladies and gentlemen the profile of dfcu bank limited reveals a common transformation process that has occurred in uganda ’ s banking industry over the past 10 years ; upon acquisition of the then gold trust bank limited by dfcu limited, dfcu bank limited was licenced as a commercial bank in 2000 ; over the last three years, dfcu bank limited witnessed impressive growth in the following key performance indicators : item deposits ugx. 127. 0 bn ugx. 220. 8 bn ugx. 489. 7 bn assets ugx. 209. 4 bn ugx. 493. 5 bn ugx. 817. 0 bn ugx. 276. 9 bn ugx. 405. 0 bn ugx. 40. 9 bn ugx. 68. 9 bn ugx. 13. 6 bn ugx. 21. 1 bn loans / advs core capital ugx. 21. 7 bn net profit branches atms dfcu bank limited has all through the past period maintained full compliance with statutory requirements on capital adequacy, which is a key performance indicator ; dfcu bank limited has been able to roll - out a number of financial products, which include ; i ) savings plus foreign accounts ( diaspora ) ; ii ) women in business accounts ; iii ) access plus loans ; iv ) tax loans ; v ) contract finance ; vi ) commodity finance ; vii ) working capital loans ; viii ) internet banking ; bis central bankers ’ speeches behind this impressive performance of dfcu bank limited is the financial support in terms of short to long - term loans drawn from committed partners under the umbrella of the parent company, dfcu limited. these shareholders include ; i ) proparco ; ii ) norfund ; iii ) cdc ; iv ) fmo ; v ) eib ; vi ) kfw the above impressive performance has qualified dfcu bank limited into a major contributor in the development of uganda ’ s financial sector, with a sizeable portion

of the market share ; turning to bank of uganda, i wish to re - affirm that as a monetary policy and regulatory authority, the mission of “ maintaining price stability and a sound financial system ” remains paramount. on the monetary front, the recent unfolding inflationary pressures have been proactively responded to using a package of instruments, which include ; i ) pursuing a tight monetary policy stance to regulate money supply ; ii ) tactical interventions into the foreign exchange market to manage and minimize sudden fluctuations in the exchange rate ; on the regulatory front, the following have been applied to ensure soundness and stability of the financial sector : i ) conducting regular on - site examinations and off - site surveillance of supervised financial institutions in order to initiate prompt corrective actions as warranted ; ii ) enhancing risk management framework in all supervised financial institutions ; iii ) implementation of risk - based supervision to foster timely identification, measurement, monitoring and controls of risks inherent in the financial sector ; iv ) periodic reviews of the legal and regulatory framework to ensure update with current developments in the financial sector ; v ) aligning the regulatory framework with international standards especially after the recent global financial crisis ; vi ) to facilitate innovation through amendment of the legal and regulatory framework to permit the following : i ) implement mobile money banking ; ii ) bancassurance ; iii ) islamic banking & finance products. rolling out guidelines for financial literacy and consumer protection. bis central bankers ’ speeches