In this context, the reduction in risk premiums no longer reflects only a diminution of the underlying risks, but also agents’ reduced risk aversion. Nor can it be ruled out that the premiums asked to hedge risks underestimate their true magnitude. The favourable conditions on the financial markets delay the correction of real imbalances, masking the symptoms without removing the causes.
Despite the shocks emanating from the global financial crisis, Uganda’s banking system has remained in a markedly robust financial condition, with average capital adequacy levels comfortably in excess of statutory minimum levels, low levels of non performing loans and impressive profitability. BIS Review 174/2010  1  Prof. Tumusiime-Mutebile was recently appointed to a third five year term as Governor.