Total banks treasury dealings near $2 billion for 2017
March 26, 2018—Stanbic Bank Uganda (SBU) recently hosted the third ACI Uganda Financial Market Association’s members meeting of the year involving dealers who last year traded a total of $1.8 billion in the secondary market.
The high level monthly meeting of financial dealers and representatives from commercial bank treasury departments, also featured a panel discussion that analysed the linkages between private sector credit and GDP growth as well as the impact of Bank of Uganda (BoU) foreign exchange reserves build up program.
In his opening remarks, Benoni Okwenje, the ACI Uganda Chairman and Fixed Income Manager at Stanbic Bank said, “This year we aim to be a lot more proactive in our approach and work a lot harder towards achieving our objectives of increasing the number of training opportunities for our members, reviving our CSI initiatives and creating heightened awareness about the critical role we play within the economy.”
ACI Uganda represents the interests of the professional financial markets community and through the 24 commercial banks in the country, ACI members drive market growth, awareness and development.
Okwenje said, “Last year alone a total of UGX 6.693 trillion ($1.823 billion) worth of government securities was traded in the secondary market by ACI Bank dealers, many of whom are here today representing 55.2% of all outstanding stock. Despite this most Ugandans have limited knowledge about what we do and how our work helps support Government to implement its monetary and fiscal policies.”
Representing BoU, Alan Norman Lwetabe the Assistant Director Financial Markets lauded the association for the positive contribution they make towards the development of Uganda’s financial markets.
He said, “In a country like Uganda, where the markets are still relatively young, it is of critical importance that industry professionals come together and strive for excellence by promoting training, certification and ethical conduct. In the 13 years ACI Uganda has been in existence BOU has found ACI to be an invaluable partner as we strive to achieve Uganda’s monetary and fiscal objectives. We look forward to working closely with the new executive in the year ahead as you deliver on your mandate.”
Elaborating on why ACI exists and the vital role the treasury function in plays a commercial bank’s business cycle. Okwenje said, “To work in treasury you must have highly specialised skills, because the decisions taken there have an impact not only on the bank, but on the wider economy. This is the reason why Bank of Uganda requires all staff in commercial bank treasury departments to be certified by attaining the ACI Dealing Certificate.”
ACI Uganda which was incorporated in 2005, is affiliated to ACI Financial Markets Association (ACIFMA), the global body headquartered on Paris France. It focuses on enhancing global best market practices and supporting financial market participants to adhere to the principals of ethical conduct.
SBU is part of the South African-based Standard Bank Group which earlier this month reported assets of nearly $180 billion, making it the largest banking group in Africa. Earnings as at December 2017 topped $2 billion, a 14% rise compared to the previous year.