Bachelor of Arts in Economics

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https://testir.kiu.ac.ug/handle/20.500.12306/9032

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Browsing Bachelor of Arts in Economics by Subject "Commercial banks"

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    Relationship lending, transaction costs and the lending interest rates of commercial banks in Uganda
    (Kampala International University, College of Economics and Management, 2013-08) Mugasa, Philip
    Lending has been, and is still the mainstay of banking business in emerging economies like Uganda. The commercial bank lending interest rates in Uganda have persistently remained high. The study aimed at understanding the relationship between relationship lending, transaction costs and lending interest rates. To achieve this aim, a transactional cost approach in terms of opportunism, assets specificity, frequency, uncertainty, governance set-up costs and relational lending technology in terms of duration, multiple banking, pre-existence and trust were examined to determine their effect on lending interest rates. Primary data was collected from 14 commercial banks in Uganda and their bo1rnwers. A sample of 225 was drawn from the population of 566 medium and large sized borrowing enterprises and bank employees of credit departments. A total of 15 l questionnaires were returned answered and data was analyzed using SPSS. The study findings reveal that relationship lending has a significant negative effect on lending interest rates and transaction costs. They further reveal that transaction costs have a significant positive effect on the lending interest rates charged by commercial banks in Uganda. Therefore the study draws a conclusion that relationship lending and transaction costs have a role in commercial bank loan pricing and contracting process or decision making. Since the findings indicate that loan interest rates are more sensitive to transaction costs than relationship lending, the study recommends that commercial banks consider employing relational governance structures coupled with greater borrower-lender interactions to eliminate opportunism and thus minimize transaction costs incurred.
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    The role of commercial banks in the economic development of Uganda: case study commercial banks in Ntungamo Sub County
    (Kampala International University, College of Economics and Management, 2009-07) Niwagaba; Alex
    It's the ann of the study to show the role of commercial banks in the economic development of Uganda considering the case study of Stanbic bank and Centenary bank in Ntungamo town. The study undertakes to find out how commercial activities and agriculture in particular has been supported by the existence of Stanbic bank and Centenary Bank in Ntungamo to ensure that people acquire loans which in turn they use to develop their domestic mcomes. Chapter one handled the back ground of the study, statement of the problem, the purpose of the study, scope of the study among others. Chapter two discussed the literature review, sitting of the importance and purpose of Stanbic and Centenary bank on the economic development of Uganda Ntungamo District being the case study. Chapter three discussed the methodology, research design, study area and population of the study, sample size and selection. Chapter four discussed research findings, while chapter five covered summary, conclusions, and recommendations of the findings.