Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank

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...

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Main Authors:	Clarke, George R.G., Cull, Robert, Fuchs, Michael
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO CREDIT ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS AGRICULTURAL ACTIVITIES AGRICULTURAL LOANS ANNUAL DEPOSIT ASSET ALLOCATION ASSET BASE ASSET GROWTH ASSET MANAGEMENT ASSET PORTFOLIO ATMS AUCTION BAD DEBTS BALANCE SHEET BALANCE SHEETS BANK BRANCHES BANK FAILURES BANK POLICY BANK PRIVATIZATION BANK PROFITABILITY BANK REGULATION BANK RESTRUCTURING BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTOR STABILITY BANKING SECTORS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BARRIER BARRIER TO ENTRY BRANCH NETWORK BUSINESS DEVELOPMENT BUYER BUYERS CAPITAL ACCOUNT CAPITAL INJECTIONS COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMPUTER SYSTEM COMPUTER SYSTEMS CONFLICTS OF INTEREST CORPORATE GOVERNANCE COSTS TO BORROWERS CREDIT GROWTH CREDIT OPPORTUNITIES CREDITWORTHINESS DEBT DEPOSIT DEPOSIT ACCOUNTS DEPOSIT INSURANCE DEPOSIT MONEY BANKS DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT BANK DOMESTIC BANK DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES ECONOMIES OF SCALE ENTERPRISE DEVELOPMENT EQUITY STAKE EXPENDITURE EXPENDITURES EXPENSE RATIO EXPORT SECTORS EXTENSION OF CREDIT FINANCIAL ANALYSIS FINANCIAL CRISES FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL SECTOR FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR LIBERALIZATION FINANCIAL SECTOR REFORMS FINANCIAL SERVICES FINANCIAL SERVICES INDUSTRY FINANCIAL STATEMENTS FINANCIAL STRUCTURES FINANCIAL SYSTEMS FISCAL BURDEN FOREIGN BANK FOREIGN BANKS FOREIGN OWNERSHIP FORMAL SAVINGS FUTURE INCOME GOVERNMENT DEBT GOVERNMENT INVESTMENT GOVERNMENT OWNERSHIP GOVERNMENT OWNERSHIP OF BANKS GOVERNMENT POLICIES GOVERNMENT SECURITIES HOLDING HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME HOUSEHOLDS INCOME STATEMENTS INSIDER LENDING INSTITUTIONAL CONSTRAINTS INSTITUTIONAL ENVIRONMENT INTEREST EXPENSES INTEREST RATES INTERNATIONAL BANK INVESTING INVESTMENT ALTERNATIVE IPO LARGE BANK LARGE BANKS LENDING REQUIREMENTS LENDING STRATEGY LIQUIDATION LOAN LOAN EXPOSURE LOAN EXPOSURE LIMITS LOAN PORTFOLIO LOW-INCOME LOW-INCOME COUNTRY LOW-INCOME ECONOMIES LOW-INCOME ECONOMY MACROECONOMIC MANAGEMENT MAJORITY OF SHARES MARKET SEGMENTATION MARKET STRUCTURE MARKETING MIDDLE-INCOME COUNTRIES MIDDLE-INCOME ECONOMIES MULTINATIONAL NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATING COST OPERATING COSTS OPERATING EXPENSES OVERDRAFTS PARENT COMPANIES PAYMENT SYSTEM PAYMENTS INFRASTRUCTURE PAYMENTS SYSTEM PORTFOLIO ALLOCATION PORTFOLIO ALLOCATIONS PORTFOLIO QUALITY PORTFOLIOS POSITIVE COEFFICIENTS PRIVATE BANKS PRIVATE SECTOR DEVELOPMENT PRIVATIZATIONS PRODUCTIVITY PROFIT OPPORTUNITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC BANK RAPID GROWTH RATE OF GROWTH RECAPITALIZATION REMITTANCES REMOTE AREAS REORGANIZATION RETURN RETURN ON ASSETS RETURNS SALARIES SALE SALES SALES AGREEMENT SAVERS SAVINGS SAVINGS OPPORTUNITIES SECURITIES SHARE OF GOVERNMENT SECURITIES SHORT-TERM INTEREST RATES SMALL BANK SOLE PROVIDER SOLVENCY SOURCE OF INCOME STATE BANK STATE ENTERPRISE STRATEGIC INVESTOR STRATEGIC INVESTORS SUB-SAHARAN AFRICA SUPERVISION OF BANKS T-BILLS TELECOMMUNICATIONS TRANSACTION TRANSACTION COSTS TRANSITION COUNTRIES TRANSITION ECONOMIES TRANSPORT UNIONS VOLATILITY
Online Access:	http://documents.worldbank.org/curated/en/2007/11/8737386/bank-privatization-sub-saharan-africa-case-uganda-commercial-bank http://hdl.handle.net/10986/7644

id	okr-10986-7644
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCESS TO CREDIT ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS AGRICULTURAL ACTIVITIES AGRICULTURAL LOANS ANNUAL DEPOSIT ASSET ALLOCATION ASSET BASE ASSET GROWTH ASSET MANAGEMENT ASSET PORTFOLIO ATMS AUCTION BAD DEBTS BALANCE SHEET BALANCE SHEETS BANK BRANCHES BANK FAILURES BANK POLICY BANK PRIVATIZATION BANK PROFITABILITY BANK REGULATION BANK RESTRUCTURING BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTOR STABILITY BANKING SECTORS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BARRIER BARRIER TO ENTRY BRANCH NETWORK BUSINESS DEVELOPMENT BUYER BUYERS CAPITAL ACCOUNT CAPITAL INJECTIONS COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMPUTER SYSTEM COMPUTER SYSTEMS CONFLICTS OF INTEREST CORPORATE GOVERNANCE COSTS TO BORROWERS CREDIT GROWTH CREDIT OPPORTUNITIES CREDITWORTHINESS DEBT DEPOSIT DEPOSIT ACCOUNTS DEPOSIT INSURANCE DEPOSIT MONEY BANKS DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT BANK DOMESTIC BANK DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES ECONOMIES OF SCALE ENTERPRISE DEVELOPMENT EQUITY STAKE EXPENDITURE EXPENDITURES EXPENSE RATIO EXPORT SECTORS EXTENSION OF CREDIT FINANCIAL ANALYSIS FINANCIAL CRISES FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL SECTOR FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR LIBERALIZATION FINANCIAL SECTOR REFORMS FINANCIAL SERVICES FINANCIAL SERVICES INDUSTRY FINANCIAL STATEMENTS FINANCIAL STRUCTURES FINANCIAL SYSTEMS FISCAL BURDEN FOREIGN BANK FOREIGN BANKS FOREIGN OWNERSHIP FORMAL SAVINGS FUTURE INCOME GOVERNMENT DEBT GOVERNMENT INVESTMENT GOVERNMENT OWNERSHIP GOVERNMENT OWNERSHIP OF BANKS GOVERNMENT POLICIES GOVERNMENT SECURITIES HOLDING HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME HOUSEHOLDS INCOME STATEMENTS INSIDER LENDING INSTITUTIONAL CONSTRAINTS INSTITUTIONAL ENVIRONMENT INTEREST EXPENSES INTEREST RATES INTERNATIONAL BANK INVESTING INVESTMENT ALTERNATIVE IPO LARGE BANK LARGE BANKS LENDING REQUIREMENTS LENDING STRATEGY LIQUIDATION LOAN LOAN EXPOSURE LOAN EXPOSURE LIMITS LOAN PORTFOLIO LOW-INCOME LOW-INCOME COUNTRY LOW-INCOME ECONOMIES LOW-INCOME ECONOMY MACROECONOMIC MANAGEMENT MAJORITY OF SHARES MARKET SEGMENTATION MARKET STRUCTURE MARKETING MIDDLE-INCOME COUNTRIES MIDDLE-INCOME ECONOMIES MULTINATIONAL NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATING COST OPERATING COSTS OPERATING EXPENSES OVERDRAFTS PARENT COMPANIES PAYMENT SYSTEM PAYMENTS INFRASTRUCTURE PAYMENTS SYSTEM PORTFOLIO ALLOCATION PORTFOLIO ALLOCATIONS PORTFOLIO QUALITY PORTFOLIOS POSITIVE COEFFICIENTS PRIVATE BANKS PRIVATE SECTOR DEVELOPMENT PRIVATIZATIONS PRODUCTIVITY PROFIT OPPORTUNITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC BANK RAPID GROWTH RATE OF GROWTH RECAPITALIZATION REMITTANCES REMOTE AREAS REORGANIZATION RETURN RETURN ON ASSETS RETURNS SALARIES SALE SALES SALES AGREEMENT SAVERS SAVINGS SAVINGS OPPORTUNITIES SECURITIES SHARE OF GOVERNMENT SECURITIES SHORT-TERM INTEREST RATES SMALL BANK SOLE PROVIDER SOLVENCY SOURCE OF INCOME STATE BANK STATE ENTERPRISE STRATEGIC INVESTOR STRATEGIC INVESTORS SUB-SAHARAN AFRICA SUPERVISION OF BANKS T-BILLS TELECOMMUNICATIONS TRANSACTION TRANSACTION COSTS TRANSITION COUNTRIES TRANSITION ECONOMIES TRANSPORT UNIONS VOLATILITY
spellingShingle	ACCESS TO CREDIT ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS AGRICULTURAL ACTIVITIES AGRICULTURAL LOANS ANNUAL DEPOSIT ASSET ALLOCATION ASSET BASE ASSET GROWTH ASSET MANAGEMENT ASSET PORTFOLIO ATMS AUCTION BAD DEBTS BALANCE SHEET BALANCE SHEETS BANK BRANCHES BANK FAILURES BANK POLICY BANK PRIVATIZATION BANK PROFITABILITY BANK REGULATION BANK RESTRUCTURING BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTOR STABILITY BANKING SECTORS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BARRIER BARRIER TO ENTRY BRANCH NETWORK BUSINESS DEVELOPMENT BUYER BUYERS CAPITAL ACCOUNT CAPITAL INJECTIONS COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMPUTER SYSTEM COMPUTER SYSTEMS CONFLICTS OF INTEREST CORPORATE GOVERNANCE COSTS TO BORROWERS CREDIT GROWTH CREDIT OPPORTUNITIES CREDITWORTHINESS DEBT DEPOSIT DEPOSIT ACCOUNTS DEPOSIT INSURANCE DEPOSIT MONEY BANKS DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT BANK DOMESTIC BANK DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES ECONOMIES OF SCALE ENTERPRISE DEVELOPMENT EQUITY STAKE EXPENDITURE EXPENDITURES EXPENSE RATIO EXPORT SECTORS EXTENSION OF CREDIT FINANCIAL ANALYSIS FINANCIAL CRISES FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL SECTOR FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR LIBERALIZATION FINANCIAL SECTOR REFORMS FINANCIAL SERVICES FINANCIAL SERVICES INDUSTRY FINANCIAL STATEMENTS FINANCIAL STRUCTURES FINANCIAL SYSTEMS FISCAL BURDEN FOREIGN BANK FOREIGN BANKS FOREIGN OWNERSHIP FORMAL SAVINGS FUTURE INCOME GOVERNMENT DEBT GOVERNMENT INVESTMENT GOVERNMENT OWNERSHIP GOVERNMENT OWNERSHIP OF BANKS GOVERNMENT POLICIES GOVERNMENT SECURITIES HOLDING HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME HOUSEHOLDS INCOME STATEMENTS INSIDER LENDING INSTITUTIONAL CONSTRAINTS INSTITUTIONAL ENVIRONMENT INTEREST EXPENSES INTEREST RATES INTERNATIONAL BANK INVESTING INVESTMENT ALTERNATIVE IPO LARGE BANK LARGE BANKS LENDING REQUIREMENTS LENDING STRATEGY LIQUIDATION LOAN LOAN EXPOSURE LOAN EXPOSURE LIMITS LOAN PORTFOLIO LOW-INCOME LOW-INCOME COUNTRY LOW-INCOME ECONOMIES LOW-INCOME ECONOMY MACROECONOMIC MANAGEMENT MAJORITY OF SHARES MARKET SEGMENTATION MARKET STRUCTURE MARKETING MIDDLE-INCOME COUNTRIES MIDDLE-INCOME ECONOMIES MULTINATIONAL NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATING COST OPERATING COSTS OPERATING EXPENSES OVERDRAFTS PARENT COMPANIES PAYMENT SYSTEM PAYMENTS INFRASTRUCTURE PAYMENTS SYSTEM PORTFOLIO ALLOCATION PORTFOLIO ALLOCATIONS PORTFOLIO QUALITY PORTFOLIOS POSITIVE COEFFICIENTS PRIVATE BANKS PRIVATE SECTOR DEVELOPMENT PRIVATIZATIONS PRODUCTIVITY PROFIT OPPORTUNITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC BANK RAPID GROWTH RATE OF GROWTH RECAPITALIZATION REMITTANCES REMOTE AREAS REORGANIZATION RETURN RETURN ON ASSETS RETURNS SALARIES SALE SALES SALES AGREEMENT SAVERS SAVINGS SAVINGS OPPORTUNITIES SECURITIES SHARE OF GOVERNMENT SECURITIES SHORT-TERM INTEREST RATES SMALL BANK SOLE PROVIDER SOLVENCY SOURCE OF INCOME STATE BANK STATE ENTERPRISE STRATEGIC INVESTOR STRATEGIC INVESTORS SUB-SAHARAN AFRICA SUPERVISION OF BANKS T-BILLS TELECOMMUNICATIONS TRANSACTION TRANSACTION COSTS TRANSITION COUNTRIES TRANSITION ECONOMIES TRANSPORT UNIONS VOLATILITY Clarke, George R.G. Cull, Robert Fuchs, Michael Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank
geographic_facet	Africa Uganda
relation	Policy Research Working Paper; No. 4407
description	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.
format	Publications & Research :: Policy Research Working Paper
author	Clarke, George R.G. Cull, Robert Fuchs, Michael
author_facet	Clarke, George R.G. Cull, Robert Fuchs, Michael
author_sort	Clarke, George R.G.
title	Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank
title_short	Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank
title_full	Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank
title_fullStr	Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank
title_full_unstemmed	Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank
title_sort	bank privatization in sub-saharan africa : the case of uganda commercial bank
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/11/8737386/bank-privatization-sub-saharan-africa-case-uganda-commercial-bank http://hdl.handle.net/10986/7644
_version_	1764402628103503872
spelling	okr-10986-76442021-04-23T14:02:34Z Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank Clarke, George R.G. Cull, Robert Fuchs, Michael ACCESS TO CREDIT ACCESS TO FINANCIAL SERVICES ACCESS TO LOANS AGRICULTURAL ACTIVITIES AGRICULTURAL LOANS ANNUAL DEPOSIT ASSET ALLOCATION ASSET BASE ASSET GROWTH ASSET MANAGEMENT ASSET PORTFOLIO ATMS AUCTION BAD DEBTS BALANCE SHEET BALANCE SHEETS BANK BRANCHES BANK FAILURES BANK POLICY BANK PRIVATIZATION BANK PROFITABILITY BANK REGULATION BANK RESTRUCTURING BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTOR STABILITY BANKING SECTORS BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BARRIER BARRIER TO ENTRY BRANCH NETWORK BUSINESS DEVELOPMENT BUYER BUYERS CAPITAL ACCOUNT CAPITAL INJECTIONS COMMERCIAL BANK COMMERCIAL BANKS COMMERCIAL LENDING COMPUTER SYSTEM COMPUTER SYSTEMS CONFLICTS OF INTEREST CORPORATE GOVERNANCE COSTS TO BORROWERS CREDIT GROWTH CREDIT OPPORTUNITIES CREDITWORTHINESS DEBT DEPOSIT DEPOSIT ACCOUNTS DEPOSIT INSURANCE DEPOSIT MONEY BANKS DEPOSITORS DEPOSITS DEPRECIATION DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT BANK DOMESTIC BANK DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES ECONOMIES OF SCALE ENTERPRISE DEVELOPMENT EQUITY STAKE EXPENDITURE EXPENDITURES EXPENSE RATIO EXPORT SECTORS EXTENSION OF CREDIT FINANCIAL ANALYSIS FINANCIAL CRISES FINANCIAL DATA FINANCIAL DEVELOPMENT FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL SECTOR FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR LIBERALIZATION FINANCIAL SECTOR REFORMS FINANCIAL SERVICES FINANCIAL SERVICES INDUSTRY FINANCIAL STATEMENTS FINANCIAL STRUCTURES FINANCIAL SYSTEMS FISCAL BURDEN FOREIGN BANK FOREIGN BANKS FOREIGN OWNERSHIP FORMAL SAVINGS FUTURE INCOME GOVERNMENT DEBT GOVERNMENT INVESTMENT GOVERNMENT OWNERSHIP GOVERNMENT OWNERSHIP OF BANKS GOVERNMENT POLICIES GOVERNMENT SECURITIES HOLDING HOLDINGS HOLDINGS OF GOVERNMENT SECURITIES HOUSEHOLD EXPENDITURE HOUSEHOLD EXPENDITURES HOUSEHOLD INCOME HOUSEHOLDS INCOME STATEMENTS INSIDER LENDING INSTITUTIONAL CONSTRAINTS INSTITUTIONAL ENVIRONMENT INTEREST EXPENSES INTEREST RATES INTERNATIONAL BANK INVESTING INVESTMENT ALTERNATIVE IPO LARGE BANK LARGE BANKS LENDING REQUIREMENTS LENDING STRATEGY LIQUIDATION LOAN LOAN EXPOSURE LOAN EXPOSURE LIMITS LOAN PORTFOLIO LOW-INCOME LOW-INCOME COUNTRY LOW-INCOME ECONOMIES LOW-INCOME ECONOMY MACROECONOMIC MANAGEMENT MAJORITY OF SHARES MARKET SEGMENTATION MARKET STRUCTURE MARKETING MIDDLE-INCOME COUNTRIES MIDDLE-INCOME ECONOMIES MULTINATIONAL NON-PERFORMING LOANS NONPERFORMING LOANS NPL OPERATING COST OPERATING COSTS OPERATING EXPENSES OVERDRAFTS PARENT COMPANIES PAYMENT SYSTEM PAYMENTS INFRASTRUCTURE PAYMENTS SYSTEM PORTFOLIO ALLOCATION PORTFOLIO ALLOCATIONS PORTFOLIO QUALITY PORTFOLIOS POSITIVE COEFFICIENTS PRIVATE BANKS PRIVATE SECTOR DEVELOPMENT PRIVATIZATIONS PRODUCTIVITY PROFIT OPPORTUNITY PROFITABILITY PRUDENTIAL REGULATION PUBLIC BANK RAPID GROWTH RATE OF GROWTH RECAPITALIZATION REMITTANCES REMOTE AREAS REORGANIZATION RETURN RETURN ON ASSETS RETURNS SALARIES SALE SALES SALES AGREEMENT SAVERS SAVINGS SAVINGS OPPORTUNITIES SECURITIES SHARE OF GOVERNMENT SECURITIES SHORT-TERM INTEREST RATES SMALL BANK SOLE PROVIDER SOLVENCY SOURCE OF INCOME STATE BANK STATE ENTERPRISE STRATEGIC INVESTOR STRATEGIC INVESTORS SUB-SAHARAN AFRICA SUPERVISION OF BANKS T-BILLS TELECOMMUNICATIONS TRANSACTION TRANSACTION COSTS TRANSITION COUNTRIES TRANSITION ECONOMIES TRANSPORT UNIONS VOLATILITY 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. 2012-06-11T15:04:11Z 2012-06-11T15:04:11Z 2007-11 http://documents.worldbank.org/curated/en/2007/11/8737386/bank-privatization-sub-saharan-africa-case-uganda-commercial-bank http://hdl.handle.net/10986/7644 English Policy Research Working Paper; No. 4407 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Uganda

Bank Privatization in Sub-Saharan Africa : The Case of Uganda Commercial Bank

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