September 11, 2018

Stanbic lifts Primary dealer award for seventh year

StanbicpdaApril 11, 2018 – Uganda’s largest lender by assets, Stanbic, was yesterday named the best dealer in government securities for 2017, the seventh year in a row that the bank is winning the award, now in its thirteenth edition.

Ban of Uganda Governor Emmanuel Tumusiime Mutebile said Stanbic was recognized for its participation in the primary auctions, market making capabilities, consistent pricing and timely market intelligence.

Mutebile said the secondary market in government securities grew 29percent to UGX 5.1 trillion against 3.6 trillion in 2016. The ratio of secondary market turnover to the total outstanding stock of government treasury securities increased from 28.9pc to 41.0pc over the same period.

He partly attributed the robust performance to reforms to the primary dealer system in 2016 that gave all licensed commercial banks in Uganda direct access to the primary market for government securities.

The banks are bow able to open CSD accounts with the BoU for their clients on any business day through a web interface and are allowed to accept and process their clients’ bids for government securities. The banks can also buy back their clients securities if the client chooses to sell on the secondary market.

“These reforms have eased the client registration process on the CSD as evidenced by increased retail participant registrations, enabling faster and more efficient secondary market trading as all banks can complete client sale and purchase orders online without using the old BoU physical instrument for transferring CSD forms” Mutebile said.

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