Stanbic Bank has again been recognised by the Central Bank as best performing primary dealer for 2017.
It is the seventh time in a row that Stanbic Bank Uganda is being recognised by Bank of Uganda as the best performing commercial bank trading in the Government securities-in form of Treasury Bills and Bonds.
The award by the Central Bank honours financial institutions that promote participation in trading in government securities in a bid to foster the development of financial markets and improve the secondary market trading system.
The Governor Bank of Uganda, Emmanuel Mutebile acknowledged the role of Stanbic Bank Uganda Ltd has played especially for participating in the primary auctions, market making capabilities, consistent pricing as well as timely market intelligence.
Mutebile said because of Stanbic Bank’s effort, it has been able to ensure efficiency in the operations related to the Government securities market at the central bank.
Primary Dealer (PD) system launched in 2005 is aimed at promoting participation in Uganda Government securities markets.
Mutebile said alongside the retail segment, the participating banks have also enhanced liquidity in the secondary market transactions.
He said the total turnover in the secondary market increased by 29 percent to UGX 5.1 trillion in 2017, from UGX 3.6 trillion in 2016.
Mutebile revealed that the ratio of secondary market turnover to the total outstanding stock of Government Treasury securities increased significantly to 41.0 percent in 2017 from 28.9 percent in 2016.
Stanbic Bank Chief Executive Officer, Patrick Mweheire while accepting the award said Stanbic bank accounted for 30% of the 5.1 trillion shillings in Government securities traded on the secondary market.
Mweheire revealed that the bulk of the funds are used to finance construction of much needed national infrastructure projects so vital for trade and economic transformation.