Kasi moves to calm fears over health of banking sector

Fabian Kasi, the managing director of Centenary Bank and also the chairman of the Uganda Bankers' Association has moved to calm anxiety among Ugandans over the health of the banking industry in the country.

"I want to take this opportunity as the chairman of Uganda Bankers' Association to assure you that all the 25 commercial banks in this country are operating, they are open for business, and we have a strong regulator who is tasked to ensure that we do what we are supposed to do," he said at a dinner organized by the bank for clients over the weekend at Imperial Royale Hotel in Kampala.

Bank of Uganda (BoU) recently took over the management of Crane Bank, a move that made many fear for the state of banking in the country.

"Banking in this country is one of the most regulated industries in this country, such that they are few chances that people will lose their deposits," he said.

Kasi also used the opportunity to address some of the challenges facing the banking industry in the country; he focused most on the high interest rates.

 "We have the challenge of interest rates. Many customers complain and we know it that interest rates are high. The only way these rates can come down is by looking at the various factors that make up these interest rates; the cost of the money that we give to you. The money that we give you is priced at a certain level; this usually depends on the supplier," he said.

The managing director also blamed high defaulting rates, and the cost of operation faced by banks for the expensive credit from banks.

 "The electricity in the banking halls, maintaining the branches operate is a very expensive undertaking" he added.