Browsing by Author "Kijjambu, Frederick Nsambu"

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Performance of non-African foreign commercial banks in Uganda
(Uganda Management Institute, 2016-11) Kijjambu, Frederick Nsambu; Ddumba-Ssentamu, John
The focus of this study was to establish key factors responsible for the performance of non-African foreign Commercial banks in Uganda, in the light of Global Advantage Theory. The analysis was supplemented by structure–conduct performance (SCP) and efﬁciency hypothesizes (ES). The study analyzed the performance of licensed non-African foreign commercial banks on average, over the period 2000-2011, using Linear multiple regression analysis. The study ﬁndings showed that, management efﬁciency, capital adequacy and reputation/goodwill are key factors affecting the performance of non-African foreign commercial banks in Uganda. On the contrary, credit risk has a negative impact on performance of non-African foreign commercial banks in Uganda. On a positive note, diversiﬁcation, investment in securities and correct prediction of inﬂation are factors that drive the enhanced performance of non-African foreign commercial banks in Uganda. The emerging policy implication is that commercial banks’ managements should focus on improving: management efﬁciency; bank reputation/goodwill; credit risk management; capital adequacy levels; diversiﬁcation and investment. In addition, monetary policy regulations and instruments should not enforce high liquidity and capital adequacy levels. There is also need for regulations on non-interest income activities to harmonize the impact of diversiﬁcation on all commercial banks’ performance and avoid the exploitation of commercial banks’ customers.