ANALYSIS: Are banks shying away from lending to Ugandans? In the heart of Uganda's dynamic economic landscape, banks have been the stalwart pillars underpinning growth, nurturing development, and anchoring financial stability. They've been the catalysts of entrepreneurial aspirations, enablers of homeownership, and the driving force behind business successes. However, in the midst of this thriving financial ecosystem, a concerning trend is emerging, one that financial statements bring to light: a diminishing share of deposits finds its way into the hands of Ugandan customers as loans.

This article embarks on a journey that delves into the realm of financial statements, peeling back the layers to reveal the essential role played by Ugandan banks in the intricate credit creation process. Our exploration closely examines these financial reports, shedding light on how recent market dynamics and trends are reshaping the flow of funds, resulting in a discernible reduction in the amount of deposits being extended as loans to Ugandan customers. Uganda’s financial landscape is evolving, and its banks are adapting to these changes. Join us on this enlightening expedition as we navigate the complex terrain of banking, dissect…