Increased Foreign Commercial Banks and Performance of Domestic Commercial Banks in Uganda

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Date
2015Author
Nsambu Kijjambu, Frederick
Ddumba-Ssentamu, John
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This paper focuses on the effect of increased foreign commercial banks on performance
of domestic commercial banks in Uganda over the period 2000-2011.
Descriptive statistics were used to analyze banks’ performance trends over the period of
twelve years, divided into two periods: 2000 to 2006 being; pre- increased period of
foreign commercial banks while 2007 to 2011 being increased foreign commercial banks
periods. The study found that, increased foreign commercial banks had a positive effect
on deposits mobilization; liquidity position; Interest income and Non-interest income;
technical know-how, which included among others, risk management and eventually
improvement in profits of domestic commercial banks.
Policy implications emerged is that foreign commercial banks are major players in
commercial banking sector development, therefore, monetary policy makers and
regulatory authorities should attract many foreign commercial banks to join Uganda’s
commercial banking sector.
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- Social Sciences [30]