FOREIGN EXCHANGE AND INTERNATIONAL TRADE ITS EFFECT ON BANK PROFITABILITY

ABSTRACT 

This project is titled foreign exchange and international trade it’s effect on bank profitability. It examines the extent and effect of foreign presence in domestic banking markets. It investigate how net interest margins, overhead tax paid and profitability differ between foreign and domestic banks we find that foreign banks have higher profit than domestic bank in developing countries but the opposite is the case for developed countries. Estimation result suggest that an increased presence of foreign bank is association with a reduction in profitability and margins for domestic banks are regard to foreign exchange and international trade.

TABLE OF CONTENTS

Title Page

Approval Page

Certification

Dedication

Acknowledgements

Abstract

Table of Contents

CHAPTER ONE

Introduction 

1.1Background of the study

1.2Statement of Problem

1.3Objectives of the study

1.4Research Questions

1.5Hypothesis

1.6Significance of the Study

1.7Limitation of the study

1.8Definition of Terms

CHAPTER TWO

Literature Review

2.1The effect of Foreign Exchange and International Trade on Bank Profitability

2.2Foreign Exchange Market

2.3Foreign Currency Exposure of a Commercial Bank 

2.4Exchange Rate Volatility

2.5Foreign Exchange and International Trade Risk management

2.6Foreign exchange and International Trade Risk      

2.7Foreign Exchange and International Trade Risk and Commercial  Bank

2.8Central Banks Role in Foreign Exchange Risk Management

2.9Foreign Exchange and International Trade Risk and its Association with other types of Risks.

CHAPTER THREE

3.1Research Design and Method

3.2Research Design

3.3Research Population and Sample

3.4Sampling Technique

3.5Measuring Instrument

3.6Method of Data Collection

3.7Method of Data Analysis

CHAPTER FOUR

Data Analysis and Result

4.1Data Analysis

CHAPTER FIVE

Summary of Findings Conclusion and Recommendation 

5.1Summary of Findings

5.2Conclusion

5.3Recommendation

Bibliography 

Appendix