TABLE OF CONTENTS
DECLARATION ........................................................................................................................... i
APPROVAL .................................................................................................................................. ii
DEDICATION ............................................................................................................................. iii
ACKNOWLEDGEMENT ·········································································································· IV
LIST OF TABLES ......................................................................................................................... v
TABLE OF CONTENTS ............................................................................................................ vi
ABSTRACT .................................................................................................................................... x
CHAPTER ONE ·································••o•o••····················································································l
1.0 Introduction ............................................................................................................................ 1
1.1 Background of the Study ........................................................................................................ 1
1.2 Problem Statement ................................................................................................................. 4
1.3 Purpose of the Study .............................................................................................................. 5
1.4 Research Objectives ............................................................................................................... 5
1.5 Research Questions ................................................................................................................ 5
1.6 Scope of the Study ................................................................................................................. 5
1.6.1 Geographical Scope ............................................................................................................ 5
1. 7 Significance of the Study ....................................................................................................... 6
1.8 The Conceptual Frame Work ................................................................................................. 6
CHAPTER TWO ...................... o.oo••·············••o•e••······ ..····································································8
LITERATURE REVIEW ............................................................................................................. 8
2.0 Introduction ............................................................................................................................ 8
2.1 Employment Literature .......................................................................................................... 9
2.2 Literature on Loans and Credit Facilities ............................................................................. l 0
2.3 The Role of Financial Institutions in the Economy ........................................................ .11
vi
2.4 Significance of the financial institutions in Kabalagala centenary bank ............................ .12
2.5 Challenges of financial sector in Uganda ............................................................................ 12
2.6 Household Resource ............................................................................................................ 14
2. 7 Household Activities ............................................................................................................ 14
2.8 View of Commercial Banks on Financial Institutions ......................................................... 14
CHAPTER THREE ..................................................................................................................... 15
METHODOLOGY ...................................................................................................................... 15
3.0 Introduction .......................................................................................................................... 15
3 .1 Research Design ................................................................................................................... 15
3 .2 Study Population .................................................................................................................. 15
3.3 Sample Size .......................................................................................................................... 15
3 .4 Sampling Procedure ............................................................................................................. 16
3.5 Sampling Technique ............................................................................................................ 16
3.6 Data Collection Method ....................................................................................................... 16
3.6. 1 Primary Data .................................................................................................................... 17
3.6.2 Secondary Data ................................................................................................................. 17
3. 7 Data Collection Instruments ................................................................................................. 17
3. 7 .1 Questionnaires Method ..................................................................................................... 17
3.7.2 Interview Method .............................................................................................................. 17
3.8 Measurement of Variables ................................................................................................... 17
3.8.1 Validity of Instruments ..................................................................................................... 17
3 .8.2 Pre-Testing ........................................................................................................................ 18
3.8.3 Reliability ofinstruments .................................................................................................. 18
3.8.4 Data Validity ..................................................................................................................... 18
3 .9 Data Processing and Analysis .............................................................................................. 18
vii
3 .10 Limitations of the study ..................................................................................................... 18
CHAPTER FOUR ....................................................................................................................... 20
DATA ANALYSIS INTERPRETATION AND PRESENTATION ....................................... 20
4.0 Introduction .......................................................................................................................... 20
4.1 Social Demographic Characteristics for Staff ...................................................................... 20
4.2 The Role of Centenary Bank ................................................................................................ 23
CHAPTER FIVE ......................................................................................................................... 32
FINDINGS, DISCUSSION, CONCLUSION AND RECOMMENDATIONS ....................... 32
5.0 Introduction .......................................................................................................................... 32
5.1 Findings ................................................................................................................................ 32
5.2 "Has Centenary Bank Generated Significant Number of Employment Opportunities to
Improve Standards of Living?" .................................................................................................. 33
5.3 "Has Centenary Bank Played any Role in the Provision of Soft Loans and Credit Facilities
to the People" ............................................................................................................................. 33
5.4 Has Centenary Bank Improved On The Savings Rate Of The People?" ............................. 34
5.5 Conclusion ........................................................................................................................... 34
5.6 Recommendations ............................................................................................................... .35
5. 7 Areas for Future Research .................................................................................................... 3 5
REFERENCES ............................................................................................................................ 36
APPENDICES .............................................................................................................................. 40
APPENDIX I: ............................................................................................................................... 40
QUESTIONNAIRE FOR STAFF .............................................................................................. 40
APPENDIX II: ............................................................................................................................. 43
QUESTIONNAIRE FOR CLIENTS ......................................................................................... 43
INTERVIEW GUIDE ................................................................................................................. 46
ABSTRACT The focus of the study was to find "The role of Banking Institutions towards improving household mcomes in Kabalagala, Kampala District: A case study of Centenary Rural Development Bank (CERUDEB), Kabalagala Branch. The study targeted 78 people as beneficiaries, including staff of Centenary Bank. Banking Institutions perform vital roles by facilitating economic growth through offering credit facilities to people. In an attempt to find out the role of Banking Institutions towards improving household incomes in Kabalagala, Kampala District, three research questions were formulated for the purpose of finding out how Centenary Bank has appropriately played its roles towards creating employment opportunities, offering credit facilities and improving on the savings culture of its beneficiaries in the District. The questionnaire, use of formal interviews and observation were used in collecting data. In addition to that, documentary analysis was carried out from libraries. The collected data was further analyzed quantitatively using tables. The analysis revealed that Banking Institutions have greatly improved household incomes and as a result, eradicating poverty. It was therefore concluded that Banking Institutions have improved household incomes through offering credit facilities to the lower income earners. According to the findings together with the related literature, the following recommendations must be taken seriously. Banking institutions should be legitimately considered as one of the suitable means in the development effort as the transfer of an alien business to peasant farmers who evoke in the latter a sense of enthusiasm, which if properly directed could lead to more efficient utilization of resources. Banking institutions should mobilize enough capital either from the Central bank or money markets if they are to survive the wind of change. Banking institutions should consider themselves as organizations meeting economic needs, partial democracy, human resource development, social responsibility and international cooperation
