Cover IMF Working Papers
Bank Efficiency and Competition in Low-Income Countries: The Case of Uganda
Author: Mr. David Hauner and Mr. Shanaka J Peiris
Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 240
Language:
English
Publication Date:
01 Dec 2005
DOI:
https://doi.org/10.5089/9781451862591.001
ISBN:
9781451862591
ISSN:
1018-5941
Pages:
31
Keywords:
WP; bank; banking sector
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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There is a concern that the state-dominated, inefficient, and fragile banking systems in many low-income countries, especially in sub-Saharan Africa, are a major hindrance to economic growth. This paper systematically analyzes the impact of the far-reaching banking sector reforms undertaken in Uganda to improve competition and efficiency. Using models that have been previously used only in industrial countries, we find that the level of competition has increased significantly and has been associated with a rise in efficiency. Moreover, on average, larger banks and foreign-owned banks have become more efficient, while smaller banks have become less efficient in the face of increased competitive pressures.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund