Case Study
Centenary Rural Development Bank
How did the Centenary Rural Development Bank perform in 2002?
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15 pages
This paper reviews the performance of the Centenary Rural Development Bank (CRDB), in the context of macroeconomic changes in Uganda:
- Economic slow down;
- Weakness in demand for commercial bank credit;
- Decrease in T-Bill interest rates;
- Steady decline in exchange rate relative to the US Dollar.
The bank undertook governance and management system realignment in the year 2002. The author states that despite the changes in the external and internal environment, the bank performed well as it could improve its net-worth by 27%. However, some potential areas for the bank to improve its performance are:
- Opening of new small branches or agencies in rural areas;
- Exploring different forms of association with microfinance institutions;
- Improving operating efficiencies of Loan Officers.
Finally, the author presents the financial projections of CRDB for the period 2003-2008.
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