Bank Efficiency and Competition in Low-Income Countries: The Case of Uganda

By D. Hauner, S. Peiris. Social Science Research Network, 2005

162 citations recorded by the source corpus.

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.

Subfields: Finance, Information Systems

View Paper: https://www.semanticscholar.org/paper/816ef71d3461a7341ac82f1a0d7d4129d29f9c79

Citations in the corpus

• Impact of financial reforms on efficiency of state-owned, private and foreign banks in Pakistan (2010, unknown): “La Porta et al , 2002 ; Patti and Hardy, 2005 ; Hauner and Peiris, 2007 ).”