Bankers to hold annual conference under stability theme

July 16, 2018 in Finance, Financial Services by Editor

July 16—The Uganda Bankers Association (UBA) is holding its annual one-day conference on Tuesday July 17, under the theme, ‘Financial Sector Stability: Managing Risk in A Growing and Fast Changing Environment’ which among things will discuss bank failures and the role of the government in the financial sector.

During 2016, Crane Bank, formerly the country’s third biggest by assets, was seized by Bank of Uganda for insolvency and later sold off to dfcu Bank in early 2017.

According to the UBA briefing paper on the conference, ‘Domestically, the financial sector has witnessed stress in the recent past leading to closure of some financial institutions. However, numerous other positive developments including the amendment of the Financial Institutions Act 2004 and other related legislation have provided the environment for the introduction of new products and services while increasing reach and penetration of financial services’.

Following these amendments into law, several major banks have introduced bancassurance and gone into agency banking. Patrick Mweheire, the Chief Executive of Stanbic Bank Uganda is the current Chair of the UBA while Wilbred Owor is the Executive Director.

This year’s theme was based on these developments that create opportunities for growth as well as disruptions in different magnitudes. Instability in the financial sector can have far reaching consequences to the wider economy by negatively affecting investment, trade, incomes and has the potential of exacerbating poverty and income inequality.

Other topics to be discussed include the geo-political dynamics driving change such as Brexit, changes in the United States outlook with a Donald Trump presidency, Europe, Asia and the influence of China.

Representatives from Uganda’s 25 financial institutions, together with government technocrats, will also talk about the socio-demographic dynamics driving change, such as the unbanked population and increasing uptake of technologies to drive financial inclusion. This will involve discussions about the guidelines on regulating innovations and disruptive technologies like fintech. Regulation,  the present legal frameworks and safety nets in place are also to be discussed.

According to UBA, instability in the financial sector can have far reaching consequences to the wider economy by negatively affecting investment, trade, incomes and has the potential of exacerbating poverty and income inequality.