Globalization and Performance of Local Commercial Banks in Uganda a Case Study of Equity Bank Kabalagalauganda

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TA'BLE OF CONTENT

DECLARATION ..................................................................................................................... .i

APPROVAL ........................................................................................................................... ii

DEDICATION ....................................................................................................................... iii

ACKNOWLEDGEMENT ..................................................................................................... .iv

ABSTRACT ............................................................................................................................ v

TABLE OF CONTENT .......................................................................................................... vi

LIST OFT ABLES ................................................................................................................. .ix

CHAPTER ONE .................................................................................................................... 1

1.0 INTRODUCTION ............................................................................................................. !

1.0.1 Backgrotmd of the study ................................................................................................. !

1.0.2 Globalization and performance of commercial banks in Uganda .................................. 1

1.0.3 The Banking Industry in Uganda .................................................................................... 2

1.1 Problem Statement ............................................................................................................. 2

1.2 Research Objectives .......................................................................................................... 3

1.3 Specific objectives were: .................................................................................................. .3

1.4 Research questions ............................................................................................................ 3

1.5 scope of the study .............................................................................................................. 4

1.5.1 Geographical scope ......................................................................................................... 4

1.5.2 Content scope ................................................................................................................. 4

1.6 Significance of the study ................................................................................................... 4

CHAPTER TWO ................................................................................................................... 5

LITERATURE REVIEW ........................................................................................................ 5

2.0 Introduction ....................................................................................................................... 5

2.0.1 The Concept of Globalization ......................................................................................... 5

2.1 Challenges facing local commercial banks in Uganda ...................................................... 6

2.1.1 Competition .................................................................................................................... 6

2.1.2 Cultural differences ........................................................................................................ 6

2.1.3 Dynamic business environment ...................................................................................... 6

2.1.4 Diversification into other financial services ................................................................... 7

2.1.5 Money Laundering ......................................................................................................... 7

vi

2.1.6 Low interest rates accruing from government securities ................................................ 7

2.2 Strategies to be used in response to globalization ............................................................. 7

2.2.1 Mergers and Acquisitions ............................................................................................... 8

2.2.2 Strategic Alliances .......................................................................................................... 9

2.2.3 Joint ventures .................................................................................................................. 9

2.2.4 Restructuring ................................................................................................................ 10

2.2.5 Retrenchment /Turnaround .......................................................................................... I 0

2.3 Conceptual Framework. ................................................................................................... 11

CHAPTER THREE ............................................................................................................. 12

RESEARCH METHODOLOGY .......................................................................................... 12

3.0 Introduction ..................................................................................................................... 12

3. I Research Design .............................................................................................................. 12

3.2 sampling techniques ........................................................................................................ 12

3.3 Sample size ...................................................................................................................... 12

3.4 Sources of data ................................................................................................................. 13

3.5 Methods used for data collection ..................................................................................... 13

3.5.llnterviews ...................................................................................................................... 13

3.5.2Observations .................................................................................................................. 13

3.5.3Questionnaires ............................................................................................................... 13

3.6 Data Analysis, presentation and processing .................................................................... 14

CHAPTER FOUR ............................................................................................................... 15

DATA ANALYSIS, INTERPRETATION ANDPRESENTATION ................................... 15

4.0 Introduction ..................................................................................................................... 15

4.1 Gender ofrespondents ................................................................................................... 15

4.2 Number of years in the organisation ............................................................................... 16

4.3 Department of the employee in the organisation ............................................................. 16

4.4 Annual profitability ........................................................................................................ 17

4.5 Response to globalization ................................................................................................ 18

4.6 Presence of branches outside the country ..................................................................... 18

4.7 Products for international customer ................................................................................. 19

4.8 Challenges faced by equity bank due to globalization .................................................... 20

4.9 Strategies for solving globalization challenge ................................................................. 20

Vll

CHAPTER FIVE ................................................................................................................. 22

SUMMARY, RECOMMENDATIONS AND CONCLUSION ........................................... 22

5.0 Introduction ..................................................................................................................... 22

5.1 Summary offindings ....................................................................................................... 22

5.1.1 To determine the challenges facing local commercial banks in Uganda due to

globalization .......................................................................................................................... 22

5.1.2 To determine the strategies adopted by local commercial banks in response to

globalization .......................................................................................................................... 22

5.2 Recommendation ............................................................................................................. 22

5 .3 Conclusion ....................................................................................................................... 23

5 .4 Suggestions for further research ...................................................................................... 23

REFERENCES .................................................................................................................... 24

APPENDIX I ......................................................................................................................... 26

RESEARCH QUESTIONNAIRE ......................................................................................... 26

APPENDIX Il ........................................................................................................................ 28

INTERVIEW QUESTIONS .................................................................................................. 28

APPENDIX III ...................................................................................................................... 29

TIME SCHEDULE ................................................................................................................ 29

APPENDIX IV ...................................................................................................................... 30

ESTIMATED BUDGET FOR THE RESEARCH ............................................................... .30

ABSTRACT This research sought to investigate the effects of globalization on performance of local commercial banks in Uganda. The specific objectives were to establishing the challenges facing local commercial banks in Uganda due to globalization and to determine the strategies adopted by local commercial banks in response to globalization. The findings of the research were that the challenges faced by commercial banks in Uganda due to globalization were high competition, fraud, dynamic business environment, strict government regulations and cultural differences. Also, the research findings indicated that strategies adopted by local commercial banks in Uganda in response to globalization challenge were;-mergers and Acquisitions, Strategic Alliances, Joint ventures, Restructuring, and Retrenchment. The research concluded that globalization affected the performance of commercial banks in Uganda. Based on the research findings, the following were recommended; strategies such as mergers and Acquisitions, Strategic Alliances, Joint ventures, Restructuring, and Retrenchment should be used by banks, banks should diversify their products to meet customers ever increasing expectations, banks should establish research and development departments for conducting research on recent happenings and finally, banks should continue to equip their management with current information on globalization.

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APA

Frontiers, E. & KARIUJCT, K (2022). Globalization and Performance of Local Commercial Banks in Uganda a Case Study of Equity Bank Kabalagalauganda. Afribary. Retrieved from https://afribary.com/works/globalization-and-performance-of-local-commercial-banks-in-uganda-a-case-study-of-equity-bank-kabalagalauganda

MLA 8th

Frontiers, Edu, and KAJ3UTU KARIUJCT "Globalization and Performance of Local Commercial Banks in Uganda a Case Study of Equity Bank Kabalagalauganda" Afribary. Afribary, 18 Aug. 2022, https://afribary.com/works/globalization-and-performance-of-local-commercial-banks-in-uganda-a-case-study-of-equity-bank-kabalagalauganda. Accessed 28 Sep. 2022.

MLA7

Frontiers, Edu, and KAJ3UTU KARIUJCT . "Globalization and Performance of Local Commercial Banks in Uganda a Case Study of Equity Bank Kabalagalauganda". Afribary, Afribary, 18 Aug. 2022. Web. 28 Sep. 2022. < https://afribary.com/works/globalization-and-performance-of-local-commercial-banks-in-uganda-a-case-study-of-equity-bank-kabalagalauganda >.

Chicago

Frontiers, Edu and KARIUJCT, KAJ3UTU . "Globalization and Performance of Local Commercial Banks in Uganda a Case Study of Equity Bank Kabalagalauganda" Afribary (2022). Accessed September 28, 2022. https://afribary.com/works/globalization-and-performance-of-local-commercial-banks-in-uganda-a-case-study-of-equity-bank-kabalagalauganda