Internal capital requirement assessment and performance of Banking Industry in Uganda: A case study of Private Commercial Banks Daniel Twesige*, Dr. Richard Mwirumubi**, Erie B Mugerwa*** *Ph. D Student Nkumba University **Lecturer, Nkumba University, Entebbe Uganda ***Ass. Prof. Lecturer, Nkumba University, Entebbe Uganda Online published on 24 April, 2018. Abstract The study examined the effect of internal capital requirement assessment on the performance of commercial banks in Uganda taking private commercial banks as the case study. A combination of qualitative and quantitative research design was used. A population of 22 commercial banks was selected from which a sample of 19 commercial banks was determined using Krajicie and Morgan formula. Data was corrected from both primary and secondary sources using questionnaires and on desk research. Data was analyzed using a statistical package for social sciences (SPSS). The relationship was determined using regression equation. The results from the survey indicated that internal there is a strong relationship between internal capital requirement assessment and performance of the banking as indicated by R square and adjusted R square. From the survey the researcher concluded that internal capital requirement assessment is a key component in the performance management of the banking sector, therefore, banks should frequently assess their level of expected losses, unexpected losses, going concern situation, gone concern and validate the capital models continuously in order to maintain good quality and quantity of capital on their balance sheet. Top Keywords Internal Capital Requirement, Performance, CAMELS, Capital. Top |