Financial Institutions in Uganda currently face a challenge of high rates of financial services. Bank of Uganda in partnership with Uganda Institute of Banking and Financial Services under took a research to Establish International Best Practices on Regulation of Pricing of Services in the Financial Services Sector.

FRIENDS Consult LTD was contracted to do research on Commercial banks, Credit institutions, MDIs, MFIs and SACCOs. The study concentrated on issues of affecting interest rates (effective interest rate and attendant charges); service fees (ledger, ATM, statement, drafts, EFT charges) and remittance fees. Project activities undertaken by FCL included:

  • Comprehensive review of literature at national, regional and international levels on how prices for financial services are regulated;
  • The role of financial service providers and regulators in the development and enforcement of the pricing guidelines;
  • Steps taken by regulators to ensure transparency, publication of fees, charges and effective interest rates;
  • Current pricing practices within the Financial Services Industry and consultative workshop of key industry stakeholders on pricing of their services in the industry.