| dc.description.abstract | Globalization has been defined by the International Monetary Fund as the
increasing integration of economies around the world , particularly trade and
financial flows.The objective of the study was to examine / establish the impact of
globalization on the financial performance of commercial banks in Kenya.The
research design for the study was a descriptive design.The sample of this study consisted
of all commercial banks in Kenya that have had complete set of data for the periods
2007-2012. According to the regression equation established, taking all factors into
account (liquidity Ratio, Growth Rate of Gross Domestic Product, Debt Ratio, Financial
Globalization Indices Return on assets and Return on equities measured by ROA and
ROE will be influenced highly. The study found out that globalization have an impact on
financial performance of commercial banks in Kenya, therefore it recommends that
globalization indices i.e.interest rate deregulation, reduction of credit control, reduction
of entry barriers and improvement of prudential regulation should be taken in to account
by central bank and advice commercial banks the best way possible on how to minimize
their effect on financial performance as they focus on maximizing profits and minimizing
losses in a global market. The findings further recommends that commercial banks
should always strive to adopt better global exercises such as corporate governance,
technology and monitor foreign direct investments and capital flow in order to cope with
globalization pace. | en |
