dc.contributor.author | Muriuki, Maxwell M | |
dc.date.accessioned | 2013-02-28T15:26:06Z | |
dc.date.issued | 2011-10 | |
dc.identifier.citation | MBA Thesis | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/12589 | |
dc.description | Strategic response to the global financial crisis of 2008 in selected major commercial banks in Kenya | en |
dc.description.abstract | The major objective of this study is to identify the strategic responses by the selected
major commercial banks in Kenya to the recent global financial crises of 2008. Many
banks in other parts of the world were negatively affected and even closed down. It is
therefore important to understand how the banks were able to cushion themselves against
the adverse effects of the global financial crises. For this study the banks that were
selected are Barclays Bank, Kenya Commercial Bank, Equity Bank and cooperative Bank
of Kenya. Global financial crises of 2008 started in the USA where Banks doing
mortgage faced a liquidity problem due to lending to sub-prime borrowers who could not
be able to pay back loans. They would repossess the houses sold to other sub-prime
borrowers. The circle continued until there were more houses repossessed than the
market could absorb. The value of the property dropped and banks had a lot of worthless
properties and little money to support operations. This saw some big banks close down or
run bankrupt. This study has revealed the strategic responses adapted by the selected
major commercial banks in Kenya to cushion them. This included prudent cost
management and review of existing products and policies especially in lending. Among
the fourteen respondents it was noted that all the banks strategically responded to the
global financial crises in order to remain competitive. Using s five-point Likert scale with
(A lot, average, less, No change and I don’t know) the study was able to reveal that more
attention was focused on realigning and reviewing policies around products as well as
prudent cost management. It is incumbent that upon firms keep on scanning the
environment to identify any threats or opportunities so as to be able to strategically
respond. From the study it is important to note that the banks responded in different ways
towards the effects of Global financial crisis. While some were slowing down in
expansion programs, others were accelerating in the same. Going forward it is important
that Kenya Bankers Association which is a linking body and a policy custodian with all
Commercial bank in collaboration with the central bank of Kenya to come up with a
nerve centre for research. This would help raise a flag in case of any expected force from
the environment. Banks should also invest a lot in research and development not only in
products but also on matters relating to global economics. | en |
dc.description.sponsorship | University of Nairobi | en |
dc.language.iso | en | en |
dc.subject | Global financial crisis | en |
dc.subject | Commercial banks | en |
dc.subject | Strategic response | en |
dc.title | Strategic response to the global financial crisis of 2008 in selected major commercial banks in Kenya | en |
dc.type | Thesis | en |
local.publisher | School of Business, University of Nairobi | en |