Abstract:
The main objective of the study was to critically examine and analyze the role of commercial banks on the growth of towns. The study portrays how loans and credit affect the GDP and the level of urban growth and consequently the entire economy
The data for this study was will collect through secondary sources. Secondary sources included a number of text books and annual reports. The data was analyzed through quantitative analysis using descriptive statistics.
At the end of this study, it was revealed that Commercial banks have a positive impact on the growth. It was also realized that Domestic credits from commercial banks have a directly proportional relationship.
The recommendations were posted on the fact that, government should encourage the saving culture of Ugandans, increase the level of deregulation in the banking sector and also reduce the tax burden on commercial banks.
