Bank privatization in Sub-Saharan Africa : the case of Uganda commercial bank, Vol. 1 of 1

About

Countries

Data & Research

Learning

News

Projects & Operations

Publications

Topics

Home > Data & Research > Research > Author Profile > Report Details

Bank privatization in Sub-Saharan Africa : the case of Uganda commercial bank

Author:	Clarke, George R.G.; Cull, Robert; Fuchs, Michael;	Collection Title:	Policy Research working paper ; no. WPS 4407
Country:	Uganda; Africa;	Date Stored:	2007/11/20
Document Date:	2007/11/01	Document Type:	Policy Research Working Paper
Language:	English	Region:	Africa
Report Number:	WPS4407	SubTopics:	Access to Finance; Emerging Markets; Banks & Banking Reform; Debt Markets;
Volume No:	1 of 1

Summary: Previous empirical analyses have found that bank privatizations are more successful when the government fully relinquishes control, when the bank is privatized to a strategic investor, and when foreign-owned banks are allowed to participate in the bidding. The privatization of Uganda Commercial Bank (UCB) to the South African bank Stanbic met all these criteria, suggesting that it is a likely candidate for success. But other features suggest reasons for caution: UCB dominated the Ugandan banking sector prior to privatization and the institutional environment in Uganda was less favorable than in many of the middle-income countries looked at in earlier empirical studies. Despite these concerns, the privatization appears to have been relatively successful. The portfolio of the privatized bank, which was cleaned prior to sale, remains relatively strong and profitability and credit growth are now on par with other Ugandan banks. Though market segmentation remains a concern since Stanbic faces little or no direct competition in many remote areas, some early results suggest that access to credit has improved for some hard-to-serve groups.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 46 pages	Official version*	0.39
	Text	Text version**

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.

** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: http://go.worldbank.org/JDJ1OCVSF0