Banks start drive to reduce overhead costs

UBA executive director, Mr Wilbrod Humphrey Owor

What you need to know:

  • Mr Fabian Kasi, the UBA chairman, said the approach will result in appropriate recommendations that they can adopt to overcome the challenges and ensure that there’s sustainability in the businesses we all do.
  • Experts argue that the largest single contributor to interest rate spreads in Uganda is bank overhead costs, which are high because of the structural features of the economy and the banking system.

KAMPALA. Commercial banks under their umbrella organisation, Uganda Bankers Association (UBA), have started a series of consultative meetings with various stakeholders to find a lasting solution to the high cost of credit in Uganda.
During a presentation to MPs on Monday, Mr Wilbrod Humphrey Owor, the executive director UBA, said banks were undertaking collaborative projects that involve shared technology platforms to reduce the cost of delivery of services and increase their outreach.

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