The financial role played by foreign banks in the domestic banking sector: a case study of Barclays bank of Kenya
The study attempted to establish the role played by foreign banks in the Kenyan banking sector. A sample of 12 top level management was targeted as respondents for the study. The study got all the intended respondents. A contextual analysis was used to achieve the objective of the study. Interview guides were the main source of collecting data. The study established that there is a great sense a financial impact by foreign banks to the domestic banking sector. However it was also noted that all foreign banks come in to the country at different time and for different reasons but the most attracting reasons for their entry are the promising economy and the fact that Kenya is a developing country with untapped market share when it comes to banking. The study also found out that there is a great financial impact or role as they introduce new products to the market, have better management skills that help in running the banks in a more professional way, they also have a wider credit facility as they can get help from their other branches. However it is also evident that Kenyan local banks are also doing well as they have managed to get into the rural areas and educated the people there on need of saving. The study recommended that there should be a larger study on the same so as to get a clearer outcome on ways that our local banks can also improve and earn high profits which is going to benefit the local community. Financially the foreign banks have been seen to bring more cash flow in the economy which improves the economy of the country at large, more credit is also advanced to the citizens hence enabling them to better living standards if the loans are used accordingly, they have also been seen to provide a one stop shop for financial services which is a great improvement towards reaching our vision 2030.Another approach of the study would be one, which would detail the various sectors of the Kenyan economy and growth as affected by foreign banks, and track how these affected the performances of the domestic banks by trending profit and loss results and stock prices, market share. This way the specific financial role of foreign banks would be identified.