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 at the launch of Orient bank’s latest branch at Acacia mall in Kampala.
He also bemoaned banks’ high operating costs as a share of total assets is too high.
“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 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, Orient bank board chairman 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.