Assessing the financial resilience of commercial banks in Uganda: a case study of Opportunity Bank Uganda

Abstract

This study examined the financial resilience of Opportunity Bank Uganda. The study was guided by three objectives which included assessing the current state of financial resilience of Opportunity Bank, the challenges associated with the current state of financial resilience and the strategies to address those challenges at Opportunity Bank Uganda. The study used cross sectional and descriptive research design alongside quantitative approach which was used with a sample of size of 176. Data was collected using an online questionnaire. The study findings revealed that the current state of financial resilience at Opportunity Bank is moderate, with reliance on borrowed funds and challenges like increased debt and liquidity issues. The trend towards higher debt levels, while not statistically significant, indicated a potential increase in financial risk. Causes included inadequate liquidity, rising accrued expenses, and growing creditor obligations. To address these challenges, the bank should diversify revenue streams, enhance process reviews, increase cash reserves, and implement risk assessment strategies.