Examination of corporate governance practices in commercial banks: a case study of Centenary Bank Uganda (Central Region)
Owor, Sam Julius Ongala
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The purpose of the study was to evaluate corporate governance practices for more effective performance in commercial banks. The study focused on the following objectives; to examine corporate governance practices applied in centenary bank, to assess the challenges of corporate governance practices in commercial government institutions sector in Uganda, and to design strategies for more effective corporate governance in Ugandan commercial banks. The study design was cross sectional and quantitative approach was employed to gain an in-depth understanding corporate governance practices in centenary bank Uganda. The formula of Krejcie Morgan (1970) was used to determine a sample size of 40. Stratified sampling was used to raise the required sample size. Questionnaires were used to collect data. Frequency tables and graphs were drawn using Statistical Packages for Social Scientist (SPSS), and analysis made there on. Findings indicate that centenary Bank has Limited access to information by the board of directors, Gender imbalance and limited representation on the board of directors, there is unskilled and inexperienced membership on the board of directors, ineffective supervisory, regulatory and enforcement leadership system, improper adherence to governance practices by staff, unsatisfactory remuneration packages to employees, In conclusion insufficient implementation, coordination and monitoring of governance practices, the bank's audits are done by incredible firms, Ineffective communication of corporate governance practices down the lower management levels, and there is inadequate risk management information to the board are the major challenges. Centenary Bank should focus on proper Governance Practices and Principles not only to boost and enhance their financial performances but as path to gaining a better public image, thus recognized by the society in which the bank operates as socially receptive commercial bank(s) which may augment the banks operations and survival.