Financial liberalization and its implications for the domestic financial system: The case of Uganda
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Date
2003
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
This paper presents an analysis of the impact of financial liberalization on the conduct of
banking business and its impact on the real sector. Survey results show that the overall
assessment by commercial banks of financial sector liberalization is positive. Financial
sector reforms and interest rate deregulation appear to have engendered efficiency gains
in the banking industry and consequently growth of credit to the private sector is
increasing. The econometric results also reveal that increased credit to the private sector
appears to be leading economic growth. However, increased credit allocation to the private
sector should not compromise monetary policy objectives. The study also recognizes the
dualistic nature of the financial system in Uganda and proposes as a policy
recommendation the linkages of the banking system with micro-credit institutions as
one way of enhancing financial intermediation in order to promote economic growth.
Description
Keywords
Financial liberalization, Domestic financial system
Citation
Kasekende, L. A., & el Atingi-Ego, M. (2003). Financial liberalization and its implications for the domestic financial system: The case of Uganda. African Economic Research Consortium AERC.