In a market economy, it has to be possible for banks without a workable business model to fail. However, if banks are very large or interconnected, their failure might disrupt the whole system – they become “too big to fail”. The ability of supervisors to resolve the bank in question is then very limited.
I am pleased to be here in Kigali for this 23rd Ordinary Meeting of the East African Community Monetary Affairs Committee (MAC). Allow me to give you an overview of the economic prospects back home. Uganda’s economy remains strong, with growth projected at 6.3 percent in FY 2019/20, largely driven by the accommodative monetary policy stance and the ongoing public infrastructure investments.