The integrated equity markets in the US cushion around 40% of total cyclical fluctuations between federal states.7 If a negative shock hits an industry or a specific region, then this loss is spread widely beyond that region. Creditors, on the other hand, are not exposed to losses – except in the event of insolvency.
The Governor also spearheaded major legislative reforms to financial regulation which were essential to strengthen the legal framework governing the financial sector in Uganda. The 2003 Micro-finance Deposit Taking Act brought, for the first time in Uganda, deposit taking microfinance institutions under the regulatory aegis of the Bank of Uganda.