then fia, 2004 prohibited financial institutions from directly or indirectly engaging in trade, commerce and industry. this restriction inevitably impeded the smooth operation of islamic banking given that islamic banking is anchored on financial institutions ’ participation in these very sectors. bis central bankers ’ speeches second, section 38 of the then fia, 2004 prohibited financial institutions from acquiring immovable property that was not intended for use in conducting banking business. as the available literature on islamic banking suggests, in some islamic banking contracts, a financial institution must buy and therefore own the asset before reselling it to the customer at a profit. this very critical process was rendered impossible under the then fia, 2004. the fia 2004 was, therefore, amended to lift the above - mentioned restrictions for islamic banks and / or conventional banks that would want to offer islamic windows. in addition to the above amendments, the financial institutions ( amendment ) act 2016 provides for the institution of key governance structures such as the shari ’ ah advisory boards, which are crucial in upholding shari ’ ah compliance. in order to operationalize the financial institutions ( amendment ) act 2016 regarding islamic banking, the bank of uganda is in advanced stages of instituting regulations and a supervisory framework for islamic banking. furthermore, as part of bou ’ s financial literacy programs and following the enactment of the financial institutions ( amendment ) act 2016, bank of uganda has embarked on multimedia sensitization campaigns on islamic banking entailing radio talk shows, newspaper inserts, workshops, and journals, among others. i, therefore, urge the general public to be on the lookout for these awareness activities and be ready to render your direct participation once called upon by the bank of uganda. islamic banking has gained prominence internationally due to its exponential growth and resilience to financial crises as well as the nature of shari ’ ah - compliant finance models that focus on the principles of investment in real assets and risk - sharing. in the islamic banking model, each contract is backed by an underlying asset or investment activity which creates a direct link between financial markets and economic activity. the islamic finance model has thus contributed to the spread of real - asset - based finance principles in many jurisdictions and is regarded as an ideal option for the financing of infrastructure projects. this provides a conducive environment for achieving a more integrated approach to economic growth. the success stories of islamic banking experienced in other jurisdictions would, without a doubt, be replicated in emerging markets like uganda once islamic banking is rolled out. i am happy to

and financial innovations like mobile money financial services and agent banking constitute critical elements of expanding financial access. in addition, i would like to highlight to the crane bank management that being located at entebbe airport brings additional responsibility in the area of customer service standards and national image. for a new visitor to uganda, often this branch may just be the first port of interaction with our country the banking sector today is characterized by heightened competition and increased risks. this requires financial institutions to continuously innovate to keep pace with the evolving risks. i am happy to note that crane bank ( u ) ltd has steadily improved its service delivery and rolled out new products to meet the changing needs of the clientele. i urge crane bank ( u ) ltd. to design robust risk management processes and internal controls to mitigate increased risks. bis central bankers ’ speeches in addition to proximity of financial services, another key factor which drives growth in the lending business of banks and therefore, financial access in uganda is that of affordability of credit. bank of uganda has for the fifth time kept the central bank rate ( cbr ) unchanged at 12 present having contained the inflation momentum as reflected in the drop of the headline inflation to 3. 4 present in april from 4. 0 present in march 2013. a neutral monetary policy stance was maintained by the central bank in order to boost economic activity further. going forward, the core inflation rate is projected to stabilize around the 5 present medium term target. in view of this, let me take this opportunity to once again urge banks to align lending rates with the cbr and facilitate the stimulating effects that are intended from bou ’ s monetary policy stance to be channelled to the economy. with these remarks, i commend the board of directors and management of crane bank ltd. for their demonstrated commitment to serving the people of uganda and beyond. it is now my honour and pleasure to declare crane bank ltd entebbe airport branch officially open for banking business. thank you. bis central bankers ’ speeches