Mutebile tips banks on cost barriers

Apr 08, 2014

Central bank governor Emmanuel Tumusiime Mutebile has tipped commercial banks in Uganda on financial inclusion efforts.“Extending financial services will only be possible on a large scale if banks can overcome the cost barriers which are a major obstacle to the wider provision of financial services,” he said.

By Billy Rwothungeyo

Central bank governor Emmanuel Tumusiime Mutebile has tipped commercial banks in Uganda on financial inclusion efforts.


“Extending financial services will only be possible on a large scale if banks can overcome the cost barriers which are a major obstacle to the wider provision of financial services,” he said.

Mutebile was speaking at the launch of Orient bank’s latest branch at Acacia mall in Kampala.

Mutebile also bemoaned banks’ high operating costs as a share of total assets is too high. He said unless these costs are brought down, it will be hard for banks to provide more affordable operating costs are brought down.

“One of the ways in which costs can be lowered is through the introduction of new technologies for delivering financial services, such as information technology,” he advised.

He also reiterated that the central bank’s commitment to ensuring price stability and a sound financial system.

“We shall continue to conduct vigorous financial sector regulation and supervision to ensure that all banks are well capitalized and that they have robust risk management frameworks.”

Michael Cook, the board chairman of Orient bank said in a competitive banking environment, coupled with high inflation, high interest rates and fluctuating commodity prices, it is still prudent for banks to expand as there is still a lot of growth potential in the industry.

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