| dc.description.abstract | Financial globalization refers to the integration of a country’s local financial system with
international financial markets and institutions. National Bank of Kenya Limited as a
Government of Kenya owned financial institution has
been affected greatly by the level
of financial integration in Kenya. The objective of
this study was to determine the effects
of financial globalization on commercial banks in Kenya using the case of National Bank
of Kenya Limited. This study used a case study research design because the unit of
analysis was one organization. The study used primary data collected using an interview
guide. The researcher interviewed senior management
team because of their involvement
in financial integration issues in the Bank. The study used content analysis to analyze the
data collected from the respondents since it was qualitative in nature. The study
established that National Bank of Kenya Limited was
able to offer its customers
international financial services through co-operations with a nexus of foreign partner
banks. Financial integration made it easy for the Bank to transact in foreign currency and
maintain adequate foreign currency denominated accounts for its transactions. The Bank
was able to increase the efficiency ratios besides
expanding its customer base as the
customers felt more secure transacting with the Ban
k especially in the manner in which it
handled their international cross border transactions. On the influence of financial
integration and the stability of the Bank, financial integration had greatly promoted the
stability of the Bank. It brought about a stronger
market base for financial stability in the
Bank. On the effects of financial integration at NB
K, the Bank was able to borrow better
technologies both in operating and information management. Financial integration had on
the level of customer savings. Financial integration had improved the Bank’s risk
management. The study concludes that financial integration enabled the Bank to offer its
customers international financial services through
co-operations with a nexus of foreign
partner banks. The study also concludes that financial integration made it easy for the
Bank to transact in foreign currency and maintain adequate foreign currency denominated
accounts for its transactions. The study further concludes that the Bank improved
standardization in its operations as it was able to
exchange best practices with
international partners which have led to a reduction of costs and improved financial
performance. The study further concludes that due to financial integration, the Bank
diversified its investment portfolios through financial integration as the Bank did not just
invest locally but overseas through well established financial integration. This study
recommends that the Bank continues the integration
and collaboration so as to benchmark
its operations to international financial institutions for better future performance | en_US |
