3 Consequently, formal financial institutions that rely on audited financial statements and wellarticulated project and financial proposals to disburse loans assume that most SMEs are  1  Mugume, A. (2008). Profitability, Concentration, and Efficiency in Uganda’s Banking Industry. (D. A. Kihangire, C. A. Abuka, & J. O. Apaa, Eds.) The Bank of Uganda Staff Paper Journal, 2 (1), 5–35.
In such an environment of overall financial stability, it will be possible to achieve and sustain a maximum real rate of growth and development in the economy. 5.