Extending access to financial services will only be possible on a large scale if banks can overcome the cost barriers which are a major obstacle to the wider provision of financial services. Therefore, I would like take this opportunity to reiterate my view that banks in Uganda must prioritise improving efficiency. Operating costs as a share of total assets are too high.
They should increase the flexibility of wages and prices while taking into account the autonomy and responsibility of social partners. Another element to improve the resilience of EMU would be stronger business cycle synchronization through economic and financial integration; but here the evidence is sobering. Yet, while the OCA theory concentrates on asymmetric external shocks, what seems to matter more are really asymmetric trends.