The study examined the impact of capital markets practices on the financial performance of commercial banks in Uganda, using Stanbic Bank Uganda Limited as a case study. Its main objectives were to establish whether open sensitization of the public on collective investment in debt and equity affects the financial performance of Stanbic Bank Uganda. Second, to find out whether savings mobilization from investors has an effect on the financial performance of Stanbic Bank Uganda. Third, to establish whether checking inflation problems has an effect on the financial performance of Stanbic Bank Uganda. A cross-sectional survey research design was employed with both quantitative and qualitative research approaches to collect data using selfadministered questionnaires and face-to-face structured interviews from a sample of 52 respondents.

Primary data was processed using SPSS package and revealed significance of variables at P < 0.05. The findings of the study revealed that the Capital Markets Authority did not carry out open sensitization for the public: hence the general public was not aware of the possibility of collective investment in debt and equity. The study further revealed that savings mobilization from investors only contributed 44.4% to financial performance, leaving 55.6% to be mobilized by other players rather than the investors. This means that a liberalized stock market would definitely improve stock volumes traded. Lastly, on the question of checking upon inflationary problems by the Capital Markets Authority and the Central Bank it was found that investors and the public were left in the dark, which discouraged borrowers to borrow due to 26 high future payments. The study concluded that the practices of the Capital Market Authority were not implemented as expected.

Therefore, the study recommends that the Capital Markets Authority should enhance open sensitization and awareness of its practices to the public, encourage savings mobilization such that other players are encouraged to save rather than the known investors, and should work with the Central Bank to forecast inflationary problems and communicate them to the stakeholder early enough.