Louis Kasekende: Governance in the financial sector - is the financial sector over regulated?

Keynote address by Dr Louis Kasekende, Deputy Governor of the Bank of Uganda, at the 7th Annual International Leadership Conference, organized by Makerere University Business School (MUBS), Entebbe, 29 November 2017.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Heads of Regulatory bodies within Uganda's financial sector,

The Principal, Makerere University Business School (MUBS)

Invited Guests,

Ladies and Gentlemen,

Good morning.

I would like to begin by commending the Makerere University Business School for organising this International Leadership Conference and by thanking the Principal of the Business School, Prof. Balunywa, for inviting me to give a keynote address. The theme of my address this morning is financial regulation. I want to explore the objectives and the economic rationale for regulating the financial sector. I will then address the question of whether the financial sector is over regulated in Uganda.

What is the rationale for regulation of the financial sector?

Throughout the world, in both developed and developing countries, the financial sector is one of the most heavily regulated sectors of the economy. Many types of financial institutions are subject to a raft of regulations, such as capital requirements, restrictions on their business activities and financial disclosure requirements which are not applied to most other types of business.