In the past several years, the United States and Europe have witnessed large-scale mergers and business tie-ups of financial institutions, which illustrate the dynamic competition in the global financial market. There have been mergers and alliances across business and national boundaries in efforts to respond to European unification or to enter new business areas. Meanwhile, similar moves in Japan have been limited.
With technology costs falling over time this is one opportunity for addressing some of the cost issues. This notwithstanding, commendable growth in terms of products, size and intermediation has been registered in Uganda’s financial sector over the last decade or so. This growth has however not compromised its soundness, owing in part to the prudent regulation and supervision by the Bank of Uganda.