Regulatory Requirements Compliance, Management Practices and The Performance of Commercial Banks.

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Date
2022-01-29
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Makerere University Business School
Abstract
The purpose of the study was to examine the relationship between the regulatory requirements compliance, management practices and the performance of commercial banks in Uganda. Regulatory requirements compliance and management practices were the independent variables while the performance of commercial banks was the independent variable. The study was guided by the following objectives: i. To establish the relationship between the regulatory requirements compliance and the performance of commercial banks in Uganda. ii. To establish the relationship between management practices and the performance of commercial banks in Uganda and, iii. To establish the predictive power of regulatory requirements compliance and management practices on the performance of commercial banks in Uganda The study was guided by CAMEL (Capital adequacy, asset quality, management soundness, earning capacity and liquidity) developed by the Federal Reserve -FR, Office of the Comptroller of the Currency -OCC, the National Credit Union Administration, and the Federal Deposit Insurance Corporation-FDIC in the early 1970s and the systems theory by Ross Ashby (1964). The CAMEL provide a uniform a Financial Institution Rating system that the regulator would conveniently use to examine the condition of a given bank. The emphasis on capital adequacy, liquidity, earnings, management and asset quality as key factors for sound financial performance of any bank. The study adopted cross sectional and descriptive research design with quantitative approach to study the relationship between regulatory requirements, management practices and the performance of commercial banks in Uganda. A total of 132 respondents were selected from25 banks licensed and fully operational in Uganda. Both primary and secondary data were used for this study. Primary data was collected using self-administered questionnaire to the respondents while secondary data was collected through the review of available records. Data was analyzed using statistical package for social scientists (SPSS) package and Pearson correlation coefficient was used to measure the strength of relationships between the variables understudy. The findings obtained revealed that there was a positive and significant relationship between regulatory requirements, management practices and the performance of commercial banks Uganda.
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This is a master's thesis.
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Citation
Katusiime, P. (2022) Regulatory Requirements Compliance, Management Practices and The Performance of Commercial Banks. (Unpublished master’s dissertation). Makerere University Business School, Kampala, Uganda.