Economy, banking sector resilient amid domestic and global headwinds - B.o.U

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Economy, banking sector resilient amid domestic and global headwinds - B.o.U
Equity Holdings Group own Uganda's Equity Bank, announced 26 percent profit in first quarter

Bank of Uganda says economy and banking sector has remained resilient amidst domestic and global challenges.

According to the Executive Director for Supervision at Bank of Uganda, Mr Tumubweine Twinemanzi, this is due to the slowdown in government borrowing during the quarter of March moderated at 30 percent of the banking sector.

He was speaking during the release of the financial stability risk assessment report 2024 in Kampala

Officials from the central bank and other financial institutions converged in Kampala for the fourth financial stability symposium to Witness the release of the financial stability risk assessment report 2024 released by the central bank.

Twinemanzi further says the non-performing loans could rise if the full effect of sustained high rates passes through to borrowers.

According to the financial stability risk assessment report 2024 released by Bank of Uganda.

Tumubweine Twinemanzi

The asset quality started deteriorating with the non-performing loan ratio for commercial banks remaining relatively low but rose to 5.1 percent in March 2024 from 4.7 percent in December 2023.

Highest non-performing loan ratio in trade was recorded at 7.4 percent, real estate at 7.0 percent and community services sectors at 6.9 percent.

The report further indicated a slowdown in credit growth during the quarter of March 2024 partly due to elevated borrowing costs with the value of loan applications amounting to Shs5.6 billion compared to Shs5.2 billion in the quarter ended December 2023.

The Quarterly Financial Stability report provides an overview of the quarterly performance and risk assessment of the banking sector

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