Globalization and Performance of Local Commercial Banks in Uganda a Case Study of Equity Bank Kabalagalauganda

TA'BLE OF CONTENT

DECLARATION ..................................................................................................................... .i

APPROVAL ........................................................................................................................... ii

DEDICATION ....................................................................................................................... iii

ACKNOWLEDGEMENT ..................................................................................................... .iv

ABSTRACT ............................................................................................................................ v

TABLE OF CONTENT .......................................................................................................... vi

LIST OFT ABLES ................................................................................................................. .ix

CHAPTER ONE .................................................................................................................... 1

1.0 INTRODUCTION ............................................................................................................. !

1.0.1 Backgrotmd of the study ................................................................................................. !

1.0.2 Globalization and performance of commercial banks in Uganda .................................. 1

1.0.3 The Banking Industry in Uganda .................................................................................... 2

1.1 Problem Statement ............................................................................................................. 2

1.2 Research Objectives .......................................................................................................... 3

1.3 Specific objectives were: .................................................................................................. .3

1.4 Research questions ............................................................................................................ 3

1.5 scope of the study .............................................................................................................. 4

1.5.1 Geographical scope ......................................................................................................... 4

1.5.2 Content scope ................................................................................................................. 4

1.6 Significance of the study ................................................................................................... 4

CHAPTER TWO ................................................................................................................... 5

LITERATURE REVIEW ........................................................................................................ 5

2.0 Introduction ....................................................................................................................... 5

2.0.1 The Concept of Globalization ......................................................................................... 5

2.1 Challenges facing local commercial banks in Uganda ...................................................... 6

2.1.1 Competition .................................................................................................................... 6

2.1.2 Cultural differences ........................................................................................................ 6

2.1.3 Dynamic business environment ...................................................................................... 6

2.1.4 Diversification into other financial services ................................................................... 7

2.1.5 Money Laundering ......................................................................................................... 7

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2.1.6 Low interest rates accruing from government securities ................................................ 7

2.2 Strategies to be used in response to globalization ............................................................. 7

2.2.1 Mergers and Acquisitions ............................................................................................... 8

2.2.2 Strategic Alliances .......................................................................................................... 9

2.2.3 Joint ventures .................................................................................................................. 9

2.2.4 Restructuring ................................................................................................................ 10

2.2.5 Retrenchment /Turnaround .......................................................................................... I 0

2.3 Conceptual Framework. ................................................................................................... 11

CHAPTER THREE ............................................................................................................. 12

RESEARCH METHODOLOGY .......................................................................................... 12

3.0 Introduction ..................................................................................................................... 12

3. I Research Design .............................................................................................................. 12

3.2 sampling techniques ........................................................................................................ 12

3.3 Sample size ...................................................................................................................... 12

3.4 Sources of data ................................................................................................................. 13

3.5 Methods used for data collection ..................................................................................... 13

3.5.llnterviews ...................................................................................................................... 13

3.5.2Observations .................................................................................................................. 13

3.5.3Questionnaires ............................................................................................................... 13

3.6 Data Analysis, presentation and processing .................................................................... 14

CHAPTER FOUR ............................................................................................................... 15

DATA ANALYSIS, INTERPRETATION ANDPRESENTATION ................................... 15

4.0 Introduction ..................................................................................................................... 15

4.1 Gender ofrespondents ................................................................................................... 15

4.2 Number of years in the organisation ............................................................................... 16

4.3 Department of the employee in the organisation ............................................................. 16

4.4 Annual profitability ........................................................................................................ 17

4.5 Response to globalization ................................................................................................ 18

4.6 Presence of branches outside the country ..................................................................... 18

4.7 Products for international customer ................................................................................. 19

4.8 Challenges faced by equity bank due to globalization .................................................... 20

4.9 Strategies for solving globalization challenge ................................................................. 20

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CHAPTER FIVE ................................................................................................................. 22

SUMMARY, RECOMMENDATIONS AND CONCLUSION ........................................... 22

5.0 Introduction ..................................................................................................................... 22

5.1 Summary offindings ....................................................................................................... 22

5.1.1 To determine the challenges facing local commercial banks in Uganda due to

globalization .......................................................................................................................... 22

5.1.2 To determine the strategies adopted by local commercial banks in response to

globalization .......................................................................................................................... 22

5.2 Recommendation ............................................................................................................. 22

5 .3 Conclusion ....................................................................................................................... 23

5 .4 Suggestions for further research ...................................................................................... 23

REFERENCES .................................................................................................................... 24

APPENDIX I ......................................................................................................................... 26

RESEARCH QUESTIONNAIRE ......................................................................................... 26

APPENDIX Il ........................................................................................................................ 28

INTERVIEW QUESTIONS .................................................................................................. 28

APPENDIX III ...................................................................................................................... 29

TIME SCHEDULE ................................................................................................................ 29

APPENDIX IV ...................................................................................................................... 30

ESTIMATED BUDGET FOR THE RESEARCH ............................................................... .30