Are commercial Banks In Uganda becoming Risk averse? - Podcast Discussion.

Are commercial Banks In Uganda becoming Risk averse? - Podcast Discussion.

Author: Kakande's Investments Podcast March 5, 2024 Duration: 42:02

In today’s conversation, we look at the recent but worrying trend that is starving the private sector of critical credit as commercial banks are increasingly preferring to lend to Government of Uganda through buying of Local and lucrative Treasury Bonds.

From the 2022 Bank of Uganda statistics, The Government securities grew by 141% from 2017 to 2022 yet total loans grew by just 53% in the same period even when Deposits (The biggest source of Banks’ funding) grew by 73% in the similar period, majority of it was channeled to Government Securities.

Below are the graphical representation of the Bank’s Risk averseness in the last 6 years under review.

Deposits Growth vs Loans to customers growth.

Statistics from Bank of Uganda

Happy Investing everyone.

Alex Kakande



This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit kakandealex.substack.com

There's a unique perspective that comes from viewing the global financial landscape through a specific lens, and that's what you'll find with Kakande's Investments Podcast. This isn't about generic market tips; it's where Ugandan intellect and a deep understanding of local context meet broader international investment principles. Each episode feels like a conversation that bridges worlds, dissecting opportunities and strategies with a blend of regional savvy and global acumen. You'll hear discussions that ground complex financial concepts in real-world scenarios, making them accessible whether you're managing a portfolio abroad or building capital closer to home. The podcast serves as a thoughtful guide for anyone looking to cultivate a more nuanced and informed approach to growing their wealth. It’s that synthesis of distinct viewpoints that creates truly valuable insights, episode after episode. Tune in for a fresh take on building financial understanding from a grounded, yet outwardly-looking, point of view.
Author: Language: English Episodes: 20

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