Business rules shape the behaviour of a business and guide the behaviour of employees when conducting business. Therefore, business rules explain what is allowed and not allowed. It is argued that all organisations have business rules and engage in some form of relationship whether through competition or cooperation with other companies. In today’s business environment, organisations are embedded in relationships with other actors in order to gain access to resources that are needed. Therefore, each organisation’s business rules define their strategies and actions. The type of business rule behaviour which is applied by organisations encourages them to grow by taking market share from rivals or creating new markets. The aim of this study was to determine the influence of the rules of business behaviour on perceptions of the competitive banking environment in Uganda and its potential impact on certain outcomes. In this study, a quantitative research approach was adopted, as the study sought to investigate the relationships between variables. This study collected data through the use of a structured self-administered survey questionnaire which was distributed to 233 branches of banks in Uganda, totaling 700 bank employees. The survey yielded 529 usable questionnaires which were analyzed, using several statistical analysis techniques. A hypothetical model and measuring instrument of perceptions of the rules of business behaviour in the competitive banking environment within Uganda was developed. Six null-hypotheses were subjected to statistical analysis. The influence of three independent variables, namely, confrontational business behaviour, co-operational business behaviour and typologies of competition on the intermediate variable, perceptions of the competitive banking environment in Uganda were tested. The impact of these variables on three independent outcome variables, namely, organisational performance and customer loyalty and retention were also tested The empirical findings revealed that the rules of business behaviour have a significant relationship with perceptions of the competitive banking environment in Uganda. These results showed that confrontational behaviour as a rule of business behaviour can be classified as being direct or indirect. The study further revealed that banks should consider competitors as co-partners and not only as aggressors, indicating that co-operational business behaviour is statistically significantly related to perceptions of the competitive business environment in Uganda. The three typologies of competition, namely, defy attack, defense and debase attack are also positively related to perceptions of the competitive business environment in Uganda. The empirical results of the study also indicated that perceptions of the competitive banking environment have a positive relationship with outcomes such as organisational performance, customer retention and customer loyalty. This study contributed to the literature and body of knowledge regarding the impact of rules of business behaviour in the competitive banking environment in Uganda. This study could also assist banks, employees and customers alike to understand the different rules of business behaviour that exist and what strategies banks can employ to improve their position in the market. This study could also be replicated by other banks in other developing countries so as to ensure successful competition and the cooperation of banks as they engage in their activities in the banking industry.

Thesis (PhD (Economics)--University of Stellenbosch, 2007. / Using an econometric approach on panel data collected from 53 microfinance institutions (MFIs) in Uganda over a period of six years (annual), this study has identified the determinants of sustainability and outreach of MFIs. In addition, the study has also used survey data from 31 non-Bank of Uganda (BOU) regulated MFIs or Tier 4 MFIs, four BOU-regulated non-bank MFIs, 12 commercial banks and the BOU itself to assess the effects of financial regulation of MFIs on their sustainability and outreach. The results indicate that sustainability is positively and significantly driven by real effective lending rates and age of an MFI, and negatively by the ratio of gross outstanding loan portfolio to total assets, the ratio of average loan size to the national per capita income, the unit cost of loans disbursed, and a group-based delivery mechanism compared to an individual-based delivery mechanism. Outreach is positively and significantly driven by an MFI being a savings and credit co-operative (SACCO) compared to being a private company, effectiveness of governance, the age of an MFI, the ratio of gross outstanding loan portfolio to total assets, and the ratio of salary/wage paid to staff to the national per capita income, and negatively by the ratio of average loan size to the national per capita income and the unit cost of loans disbursed. In the short run, financial regulation negatively influences the outreach of MFIs, but positively affects their sustainability. In the long term, financial regulation positively influences both the sustainability and the outreach of MFIs. The results suggest a number of policy options. First, the MFIs should focus on the real effective lending rate, given its significance in their sustainability. Second, for a real effective lending rate to be relatively low, the rate of inflation should be low. This calls for prudent monetary policy management by the government. Thirdly, the cost of doing business should be kept low. This calls for prudence in business management by the MFIs and creating a cost-effective business environment by the government. While the results are tentative, in order to expand outreach more SACCOs should be established and the MFIs should commit more funds to lending purposes compared to other investments. Finally, before enacting financial legislation, it is important that its benefits and costs are adequately assessed to ensure that the benefits outweigh the costs both in the short and long term.

Dissertation (PhD) -- University of Stellenbosch, 2005. / ENGLISH ABSTRACT: This study was motivated by the need to determine the key factors that influence credit demand and credit rationing in the informal financial markets so as to contribute to policy formulation to improve access for the poor in Uganda to the broader (formal and informal) financial sector. The results of the study suggest that credit demand in the informal financial sector is positively and significantly influenced by capacity related variables (education level, and household expenditure) at the household level, and the informal lenders' credit rationing behaviour is also negatively and significantly influenced by household wealth factors (asset values). The same variables have similar effects in the models for credit demand and credit rationing in the broader financial sector. Since households demand credit for both investment and consumption smoothing, improved access to the broader financial sector will enable them to acquire more wealth, and move out of poverty in the long run. The policy options to improve small borrower access to the broader financial sector include provision of incentives to banks to serve the smaller borrowers, development of credit reference bureaus, provision of innovative insurance products to the poor, and broader economic policies that enable households to acquire more wealth. In addition appropriate linkages need to be developed between the formal and informal financial sectors so as to broaden the financial system. / AFRIKAANSE OPSOMMING: Hierdie studie is gemotiveer deur die behoefte om die sleutelfaktore te identifiseer wat die vraag na krediet en kredietrantsoenering in die informele finansiele markte bemvloed ten einde In bydrae te kan maak tot beleid om beter toegang vir die armes tot die bree (formele en informele) finansiele sektor in Uganda te bewerkstellig. Die resultate van die studie dui aan dat die vraag na informele krediet In betekenisvolle en positiewe verwantskap toon met kapasiteitsverwante veranderlikes (vlak van opvoeding en huishoudelike besteding) op die huishoudingvlak. Informele uitleners se kredietrantsoeneringsoptrede toon In betekenisvolle en negatiewe verwantskap met huishoudings se vlak van rykdom (batewaardes). Dieselfde veranderlikes toon soortgelyke verwantskappe in die geval van die modelle vir kredietvraag en kredietrantsoenering in die bree finansiele sektor. Huishoudings se vraag na krediet is vir beide investeringsdoeleindes en om In meer egalige verspreiding van verbruik te verkry. Daarom sal verbeterde toegang tot die bree finansiele sektor hulle in staat stel om meer rykdom te bekom en so uit armoede in die langer termyn te ontsnap. Die beleidsopsies om kleiner leners beter toegang tot die bree finansiele sektor te bied, sluit in voorsiening vir insentiewe aan banke om klein leners te bedien, die ontwikkeling van kredietverwysingsburo's, die voorsiening van innoverende versekeringsprodukte aan die armes, en breer ekonomiese beleid wat huishoudings in staat sal stel om meer rydom te bekom. Toepaslike skakeling tussen die formele en informele finansiele sektore moet ook ontwikkel word ten einde In verbreding van die finansiele sektor te bewerkstellig.