Interest rates and commercial bank lending a case study of equity bank Kabalagala Branch Kampala Uganda
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Date
2012-09
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study was to assess the effect of interest rates on commercial bank lending ,acase
study of equity bank kabalagala branch in makindye division Kampala Uganda.
Equity bank kabalagala branch was selected to form basis of the research study. The
main objectives was to find out the effect of interest rates on commercial bank
lending ,to determine the level of success of equity bank lending and to determine
whether there is a significant difference between interest rates and success of equity
bank lending in makindye division kampala Uganda.
The findings of this study revealed that lending rates vary between banks and between
customers. Central bank sets its own policy interest rates called central bank rates
,which is intended to influence the marginal cost of funds for commercial banks to
guide short term interbank rate. It is noted that interest rates charges are determined
by forces of demand and supply and also by inflation rates. The findings also shown
that there is no a significant difference between interest rates and commercial bank
lending.
The researcher recommended that equity bank kabalagala branch kampala Uganda
should put forward strategies to give out loans to customers and should consider the
kind of customers ,should also establish adequate insurance coverage, insurance
providers should be consulted to confirm adequate coverage for bank lending.
Description
A research report submitted to the college of economics and management sciences in partial fulfillment of the requirements for the award of a Bachelor's Degree in business administration of Kampala International University
Keywords
Interest rates, Commercial bank lending, Uganda