The impact of interest rates on the profitability of commercial banks in Uganda
| dc.contributor.author | Alexander, Katumba | |
| dc.date.accessioned | 2020-07-17T08:29:47Z | |
| dc.date.available | 2020-07-17T08:29:47Z | |
| dc.date.issued | 2018-09 | |
| dc.description | Research dissertation submitted to the College of Economics and Management in partial fulfillment of the requirements for the a ward of the bachelors degree of Business Administration accounting and Finance of Kampala International University | en_US |
| dc.description.abstract | The core objective of this project is to analyze the impact of interest rates changes on the profitability of commercial banks being operated in Uganda by examining the fmancial statements of the banks and to suggest solutions thereof. Recent movements in interest rates, inflation and exchange rates present real dangers to economic stability commercial banks in Uganda continue to report increase in profits due to the increase in the interest rates. The study done is descriptive in nature and it is based on secondary reliable data obtained from commercial banks websites, armual fmancial reports, and personal interactions with banks officials such as Uganda commercial bank Uganda branch. Since the efficiency of banking sector is considered most important for economic growth, monetary policy implementation and macro-economic stability. From the past few years, interest rates spread of banking sector of Uganda implying that the higher the interest rates, the better the performance of commercial banks. The study also found that the model containing interest rates and size of commercial bank can explain 64% of the changes in commercial banks profitability. The study recommended that policies to be put in place to shield bank lending rates and ensure monitoring the same. Fmther, so as to cushion consumers from exploitation by commercial banks, the Central Bank need exercise their monitoring roles strictly and discipline any cormnercial banks that may be increasing the interest rates arbitrary to boost their profitability. The study also recommends that in times of poor performance of commercial banks and the need to boost their profitability may be necessary for their role in economy, Central Bank of Uganda should come up with monetary policy that will lead to rise in interest rates and hence improving banks profitability. | en_US |
| dc.identifier.uri | http://hdl.handle.net/20.500.12306/9146 | |
| dc.language.iso | en | en_US |
| dc.publisher | Kampala International University.College Of Economics and Management | en_US |
| dc.subject | Interest rates | en_US |
| dc.subject | Profitability | en_US |
| dc.subject | Commercial banks | en_US |
| dc.subject | Uganda | en_US |
| dc.title | The impact of interest rates on the profitability of commercial banks in Uganda | en_US |
| dc.type | Other | en_US |