The Standard Credit Reference Bureau and the Performance of Multinational Banks Operating in the East African Community
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Date
2012-06Author
Ngunjiri, Joseph M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The management of credit risks has become an important concern to policy makers, as
they seek drive good performance of multinational banks. This research project examines
the need for a standard Credit Reference Bureau to overcome the challenges of the EAC
states integration and ensure a progressive performance of the multinational banks. This
work aims to show that integration of the EAC has necessitated the need to re evaluate
potential risks such as bad debts and high impairment levels, which continually threaten
the performance of multinational banks, and propose necessary measures to overcome the
identified challenges.
This study used a descriptive survey. The population of this study consisted of 5
Multinational Banks in the EAC and used both primary and secondary data sources in
gathering data for analysis. The primary data was collected using semi-structured
questionnaires. Data presentation was done by use of bar charts and graphs, percentages
and frequency tables. The inferential statistic regression and correlation was done to
establish the extent to which CRB ratings affects the performance of multinational banks.
The study concluded that the achievement of this goal calls for composition of a
professional body, with an international network and reputable global affiliates to provide
regional and international subscribers with both proactive and reactive solutions to credit
risk management through a comprehensive range of services. The study concluded that
prudential regulation and effective management of the standard credit reference bureau
would lead to more robust credit policy enforcement, thus positively impact to the
performance of multinational banks. Credit risk would be lower, recovery costs and
impairment rates would significantly reduce
Publisher
University of Nairobi School Of Business, University Of Nairobi