Research Paper on the Ugandan Banking Sector
About the Author:
Mr Joseph Kitamirike has a career in development banking in Uganda and is
currently Commissioner for Industry, Ministry of Tourism, Trade and Industry. He
holds a B.Sc. in Mechanical Engineering with honours of Makerere University
(1989) and an MBA in Finance from University of Connecticut (2002). He has
valuable risk analysis training and experience, beside his intimate knowledge of
financial performance of Uganda's industry at large.
:
Abstract
Following a rapid growth in numbers of local banks over the last couple of decades, a number have closed for lack of prudential operation and a high cost of credit under difficult market conditions. Substantial non-performing loans emerged from the mix of factors.
The central bank took measures to secure and restore customer confidence. Along with this, came the strong emergence of a micro-finance sub-sector.
The impact of bad loan performance has evoked measures that have seen the emergence of reversion to government securities, with distortion of conditions leading to near departure from medium to long - term lending. This article demonstrates this trend through analysis of activities for a number of banks from their reports for the end of calendar year 2003.
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