Central Bank Policies and Growth of Selected Commercial Banks in Southern Sudan

ABSTRACT 

The main purpose of this study was to investigate Central Bank Policies and growth of selected commercial Banks in Southern Sudan. The study basically looked at monetary policies i.e. open market operations, Bank rates, moral suasion, currency etc. The study aimed at correlating the compliance of commercial banks in relations to monetary policies towards their growth. The study objectives were; the degree of compliance of commercial banks on the central bank policies among selected commercial banks, the extent of growth of selected commercial banks and a significant relationship between the compliance of central bank policies and the growth of selected commercial banks in southern Sudan. The study was based on descriptive survey method. A total of 100 respondents from four banks gave responses to questionnaires and interviews. The study followed a paradigm of non experimental descriptive research which was a cross sectional survey research design. Data was analyzed using frequencies, percentages and spearman’s correlation coefficient to determine the relationship between the compliance and growth for analysis of commercial Bank towards monetary policies. It was found that Changes in monetary policy by the central bank, has a strong correlation between commercial bank loans and unemployment, GNP, and other key macroeconomic indicators, therefore was a significant relationship between compliance of commercial banks to the central bank policies and the growth of commercial banks in Southern Sudan. The study further recommended that there should be; Central Bank of Southern Sudan and it should establish a compliance department that can effectively monitor the noncompliance level of monetary policy credit guidelines for commercial banks and financial institutions, Facilitate and encourage the operation of free, fair and transparent markets in the Sudanese financial services sector and Enhance the capitalization and efficiency of Financial Services to ensure that they are adequately capitalized, well-performing and resilient, and on a par with international standards and best practices.

TABLE OF CONTENTS

Cover Page

Declaration A ii

Declaration B iii

Approval Sheet iv

Dedication v

Acknowledgements vi

Abstract vii

Table of Contents viii

List of Tables x

CHAPTER Page

One THE PROBLEM AND ITS SCOPE 1

Background of the Study 1

Statement of the Problem 4

Purpose 5

General Objective 5

Specific Objectives 5

Research Questions 5

Hypotheses 6

Scope 6

Significance 7

Two REVIEW OF RELATED LITERATURE 8

Concepts, Ideas, Opinions from Authors! Experts 8

Theoretical Perspective ii

Related Studies 14

Three METHODOLOGY 20

Research Design 20

Target Population 20

Sample Size 21

Sampling Techniques 21

Research Instruments 21

Validity and Reliability 22

Data Gathering Procedure 23

Data Analysis 23

Ethical Considerations 24

Limitations of the Study 25

Four DATA PRESENTATION ANALYSES AND INTERPRETATION

Analysis of Research Question One 27

Analysis of Research Question Two 29

Analysis of Research Question Three 32

Analysis of Research Question Four 33

Five FINDINGS, CONCLUSION AND RECOMMENDATION

Findings 37

Conclusion 42

Recommendations 42

References 44

Appendix I: Banking Policies in Sudan 50

Appendix 2; Letter of Introduction 70

Appendix 3; Research Questionnaire 77