Ugandan Banks Improve Performance

In a rare study on the impact of reforms on banking system competition and efficiency in low-income countries, the IMF finds a strong link between Uganda's improved track record in that regard and a series of steps the country took in 2002 to strengthen the sector.

The IMF study finds a marked improvement in the health of Uganda's banking system after distressed banks were closed, a risk-based approach to supervision was introduced, and the country's dominant state-owned Uganda Commercial Bank was sold to an international bank.