The effect of exchange rate on bank loans in Uganda:
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Date
2019-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
The study examined the effect of exchange rate on bank loans in Centenary bank, Kampala branch. Its objectives were to identify the bank specific factors, customer specific factor that cause default on loans payments and find out possible solutions to help reduce on the loan default rate in commercial banks. Sample sizes of 57 respondents out of a population of 72 staffs were used and it comprised of the credit staffs that included loans processors, loans officers, and credit administrators. Findings showed that the customer specific factors for loan default included multiple borrowing, the inadequate information flow amongst the loans officers and the customers and the high rate of business failures. Bank specific factors included inadequate motivation of the credits staffs in terms of incentives, the inadequate working tools to ease loan recovery e.g. the motor bikes and under staffing in the credit department. The study recommended the use of top up loans facilities instead of multiple borrowing, routine supervision and regulation of the banking activities by bank of Uganda~ provision of adequate working tools to the loans officers to enhance recovery of loans and the use of existing technology platforms to keep the customers up to date of information concerning their loans.
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the requirement for the Award of Bachelor’s Degree in Business Administration of Kampala International University
Keywords
Centenary rural development bank, Exchange rate, Bank loans, Uganda