The impact of interest rates on the performance of financial institutions in Uganda:

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Date
2014-06
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Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The research on "The impact of interest rates on the performance of financial institutions in Uganda with a case study of JINJA ROAD" was conducted research was conducted in Kenya Commercial Bank Limited (KCB)-JINJA ROAD, Uganda which was launched in May 2006 and immediately commenced operation in Uganda. The research was guided by the objectives of the study which included; assessing the impact of the interest rates in KCB JINJA ROAD, establishing the factors considered when setting interest rates in KCB JINJA ROAD, and finding out the relationship between interest rates and performance of KCB JINJA ROAD. The respondents consisted of local population especially; KCB loan officers, KCB CEOs, KCB debtors and the economists. On the impact of the interest rates in KCB JINJA ROAD, the study revealed that; increased financial base, increased demand for loans, decreased number of bank customers, and increased number of bank defaulters were answers given by the respondents on the research question. On the factors considered when setting interest rates in KCB JINJA ROAD, the findings revealed that; amount, maturity, economic conditions, and Other Financial Institution were the answers given by the respondents on the factors considered when setting interest rates in KCB. On the relationship between interest rates and performance of KCB JINJA ROAD, the findings revealed that there is a very strong relationship between interest rates and the performance of financial institutions in KCB JINJA ROAD and that the bank cannot do without interest rates from loans. Conclusions and recommendations were later made after interpreting and analyzing data.
Description
A dissertation submitted to the college of Economics and Management in partial fulfilment of the requirements for the Award of Bachelor's Degree in Business Administration of Kampala International University
Keywords
Interest rates, Performance, Financial institutions, Uganda
Citation