The Governor Prof. Emmanuel Tumusiime-Mutebile has given an award to Stanbic Bank Uganda (LTD) for being the best performing bank in dealing government securities for the months of June and July 2019. The award was received by Stanbic Bank CEO Mr. Patrick Mweheire during the quarterly Uganda Bankers Association (UBA) meeting at BoU headquarters in Kampala.
The bank has been recognised by the regulator for its role in the primary dealer system that helps in developing Financial Markets and in reducing the costs associated with issuing Government Securities; through increasing demand, market efficiency, encouraging secondary market trading and improving the quality of Financial Market information.
A primary dealer is a pre-approved bank, broker or financial institution that is able to lend money to the government through treasury bonds and treasury bills.
Background information on best performing banks in government securities award
In January 2005, the Bank of Uganda initiated the “Award for the Best Performing Primary Dealer in Uganda Government Securities for the Month” to recognize the Primary Dealer that performed best in trading Uganda Government Securities and transmitting information regarding the status of the financial markets to the Central Bank.
A Primary Dealer is any financial intermediary that has signed a Memorandum of Understanding with the Bank of Uganda to execute the following actions on a consistent basis:
§ To
participate as counter-party in Uganda Government securities auctions conducted
by the Bank of Uganda.
§ To
provide the public with prices or yields that they will buy and sell “On-the
Run” (the most recently auctioned) Uganda Government securities. i.e. Treasury
bills and Treasury bonds on a continuous basis.
§ To
provide the public with prices or yields that they will buy Off-the-Run (Other
than the most recently auctioned) Uganda Government securities on a continuous
basis.
§ To
trade with the public Uganda Government securities at the prices or yields that
they have quoted.
§ To
make available information on the status of the market to the Bank of Uganda on
a timely basis.
The points allocated for the Award to the Best Performing Primary Dealer in Uganda Government Securities for the Month are aggregated to determine the winner of the prestigious award.