, could be placed in the market. banks hoarded liquidity in order to be safe from unexpected outflows or the unknown extent of write - downs. because the usual market refinancing possibilities were blocked banks relied on highly rated collateral for their funding and the liquidity provided by the central bank. the spread between eonia and three - month euribor rose to the highest level ever at 70 bps and has remained high. unsecured trading in the money market beyond one week effectively ceased to exist. ii. central bank reaction function as liquidity retracted first from the credit markets, then money markets, intermediation vanishing, central banks had to move in : to restore orderly market conditions ; ensure the integrity of monetary transmission channels, and to ensure financial stability or prevent a systemic crisis. in view of the confidence crisis among market participants, due to uncertainty about financial individual exposures, the issues at stake were : 1 ) to have money market rates evolve close to the policy rates ; 2 ) to address the term structure problem to the extent that it was threatening the first issue ; 3 ) and thirdly to address the distributional problem of liquidity among market participants for reasons of financial stability. the somewhat more complex and elaborate toolbox of the eurosystem proved very valuable in this respect. - this applies to the instruments used to provide liquidity : the mro and ltro - this applies to minimum reserve features - this applies to the number of counterparties with direct access to central bank money - this applies finally to the range of eligible collateral let me say a word about each of these features of the eurosystem operational framework : 1. at moments of term structure difficulties and shortening of the liquidity constraints, it is of advantage to have both : one - week and three - month liquidity providing tenders conducted weekly and monthly. fine tuning operations and extraordinary additional tenders, according to standard procedures, allowed a commensurate response within a familiar context, rather than adding to prevailing uncertainty by introducing, in an emergency context, untested new facilities, instruments or procedures. 2. in monetary policy operations, the eurosystem grants direct access to liquidity to a large number of credit institutions. all euro - area institutions subject to minimum reserve requirements and which fulfil the relevant contractual or regulatory arrangements applied by their respective ncb, may access the standing facilities and / or participate in open market operations based on standard tenders. at the end of

emmanuel tumusiime - mutebile : promoting suitable and cost - effective financial services in uganda speech by mr emmanuel tumusiime - mutebile, governor of the bank of uganda, at the official opening of crane bank ’ s new branch at entebbe airport, entebbe, 16 may 2013. * * * the chairman board of directors, crane bank ltd. and all directors present the managing director, senior management and all staff of crane bank ltd all invited guests in your respective capacities ladies and gentlemen it gives me great pleasure this morning to preside over the official opening of a new branch for crane bank ltd at entebbe airport. let me start by congratulating the shareholders, board of directors, management and staff of crane bank ltd for the commendable job of instituting and implementing an expansion programme designed to increase the bank ’ s outreach. this programme will ensure delivery of financial services nearer to the people which is a fulfillment of the bank ’ s philosophy. the opening of this branch brings the total number of crane bank branches to twenty eight ( 28 ). this constitutes an important step towards the bank ’ s strategic target to open 50 branches by 2014. during its eighteen ( 18 ) years of existence, crane bank has been able to extend its footprint to key towns of uganda. the branches are consistently branded which conveys the bank ’ s corporate image as a local ugandan bank. i am pleased to announce that crane bank ltd has been granted permission to open a fully owned subsidiary in rwanda and there are plans to expand business to the democratic republic of congo and south sudan. this is a clear demonstration that the board of directors and senior management of crane bank ltd are committed to providing savings delivery outlets within the great lakes region to spur growth and support the integration process. moreover, the presence and sound operation of a ugandan bank abroad will boost uganda ’ s reputation in the region. entebbe airport is strategically located as the gateway to the country and a home for many government departments, ngos and regional organizations. this branch therefore provides an excellent business opportunity for the bank and a convenient service to its potential customers. bank of uganda will continue to support financial institutions in mobilizing savings to grow the economy but this can only be achieved when customers have access to suitable and cost - effective financial services. bank of uganda is also committed to increasing the level of financial inclusion in the country through the expansion of service outlets. indeed, the promotion of financial literacy, consumer protection