MBA Theses and Dissertations (2015)
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Browsing MBA Theses and Dissertations (2015) by Subject "Banking"
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- ItemEffects of competitive strategies on market share for commercial banks in Kenya(Strathmore University, 2015) Kasurah, Sarah SiimoiA major development in today’s world is the increased interest in management of customers so as to maintain and improve market share. Current problem is that banks have many competitive strategies but there is need to understand if strategies deployed, are the most effective, sustainable, and competitive. This understanding, will ensure full optimization of resources hence avoid unnecessary losses. Poorly deployed competitive strategies in a market have led to companies losing or reducing market share since strategies deployed, do not address key customer needs. This research therefore, sought to bridge the existing knowledge gap by carrying out a study on effects of competitive strategies on market share for commercial banks in Kenya. Key focus was on agency banking, bancassurance and mobile banking. The research design used in this research was descriptive survey. The population that was targeted in this study constituted of 44 commercial banks that have been licensed in Kenya, hence 44 respondents. The Primary and Secondary data was deployed where survey questionnaires, were handed to all operation managers of the Kenyan commercial banks. The quantitative data that was collected in this study was evaluated by means of SPSS (Statistical Package for Social Sciences) software. These results were presented via standard deviations, means, frequencies, and percentages. The results were also displayed via pie and bar charts, prose-form and graphs. This involved tallying of responses received, calculating variation percentages on responses received and decoding data as per required study objectives through SPSS. Testing of qualitative or open ended data was done through use of content analysis. To achieve the relative implication of the three variables (agency banking, bancassurance and mobile banking) regarding market share, the multivariate regression model was used. This research study established a positive relationship between agency banking as shown by a coefficient of (0.474), positive relationship between bancassurance and market share for commercial banks in Kenya as shown by a coefficient of (0.281) and positive relationship between mobile banking and market share for commercial banks in Kenya as shown by a coefficient of (0.376). The study recommended that banking institutions ought to invest more on agency banking compared to other competitive strategies researched in this study. It was found to be more positively related to the acquisition of new market for commercial banks. The study recommended that banking institutions ought to consider intensifying on mobile banking. This is because it would increase accessibility of services to the customers and thus improving institutions’ financial performance and market share. Due to the increased competition, Kenyan commercial banks ought to embrace bancassurance as a competitive strategy. This is because the banks would also benefit from bancassurance by increasing sales, market share and improving its operations but to a minimal extent if compared to agency banking and mobile banking. The study also highlighted and recommended the need to analyze effects of other competitive strategies not mentioned in this study for continuous knowledge that would guarantee business sustainability for banks.
- ItemAn evaluation of the role of information sharing in mitigating non-performing loans in Kenya’s banking sector(Strathmore University, 2015) Maina, Naomi WanjikuThis research was an evaluation of the role of information sharing in mitigating non-performing loans in Kenya’s banking sector. Guided by five research objectives, the study established quarterly distribution trend of the non-performing loans (NPL) from 2004-2013, identified factors accounting for NPL, examined the relationships between the key factors, evaluated the effect of information sharing on NPL and proposed strategies on improving information sharing towards mitigating NPL for Kenya’s banking sector. A census of 44 banks and 2 credit reference bureaus (CRBs) was undertaken using self-administered questionnaires and interviews, respectively. Descriptive statistics, factor and regression analysis were employed on the primary and secondary data collected. Limitations to the study included denied access by Central Bank of Kenya (CBK) and some commercial banks resulting in a 63% response rate. The study confirmed that information sharing practice is only one among other factors that account for NPL. The behaviour of the NPL trend in 2004-2013 was observed as affected directly or indirectly by bank lending rates, real GDP, annual overall inflation and specific provision. Three factors account for NPL behaviour – regulation, macroeconomic and bank-specific factors. In a multiple regression model bank-specific factors - bank lending rates and specific provision- have significance; macroeconomic factor overall annual inflation showed significance; real GDP showed non significance. As a bank specific factor, information sharing role is critical in mitigating NPL as it corrects the moral hazard problem of information asymmetry. All banks confirmed submitting and receiving ‘full file’ credit information to either of the CRBs. Negative credit information received from CRBs assists banks’ decision to ration credit, demand collateral and reject loan application; while positive information guides banks’ as one of several other assessment criteria required before loan approval. Strategies to improve the mechanism include expansion of borrower data captured by CRBs, CBK to promote innovation in information sharing products, quality and reliability of the data. The peculiar and contradicting behaviour of macroeconomic factors – overall annual inflation and real GDP – in affecting levels of NPL in a multiple regression model is a suggested area of further study.