Importantly, the BBA will appropriately reflect, rather than unduly penalize, long duration liabilities in the United States, facilitating the continued robustness of product availability in the U.S. that contributes to greater financial security for Americans. In the U.S., an aggregation-based approach like the BBA could also strike a better balance between entity-level, and enterprise-wide, supervision of insurance firms.
However, I think we must also be very honest in recognising that there are some aspects of the performance of the banking industry which arouse concern among the public and policymakers in this country. The first issue of concern which I want to discuss is that of interest rate spreads and margins, which are very high in Uganda.