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An Assessment of Commercial Banks' Strategic Responses to Foreign Exchange Rate: Case Study of Family Bank Ltd.

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dc.contributor.author Rakha, Sidhra
dc.date.accessioned 2020-12-17T10:47:01Z
dc.date.available 2020-12-17T10:47:01Z
dc.date.issued 2012
dc.identifier.uri http://erepo.usiu.ac.ke/11732/6335
dc.description A Project Report Submitted to the School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA). en_US
dc.description.abstract The general objective of the study was to determ i ne the strategic response to foreign exchange risks by comm ercia l ban ks i n K enya. The t h ree research object ives t hat guided the research incl uded: to ana lyze the concept of strategic response. to establ ish the foreign exchange rate exposu re by com mercia l ba n ks i n K enya and to eval uate t he strategic opt ions to manage the effect of forei gn exchange ri sk exposu re. The stud y engaged the use of a descript ive research desi gn i n order to get the data t hat i s n ecessary. Th is hel ped i n the prima ry data col lect ion as a means of gett i ng i nto the research object ives. The popu lat ion under study i ncl uded the mainstrea m empl oyees of Fam i l y ba n k l im i ted. J n ord er to determ ine the sample size, a sim pl e rand om sampl i n g was used. Th i s was so because of the need to red uce refusa l rates as a result of the homogeneit y i n the sampl e popul ation. The sample size invol ved i n the study was 50 respondents. The study engaged the use of structured questionnai res wh ich were pi lot tested i n order to ensure that there was data val id i ty as wel l as rel iabi l i ty . Data cod i ng was done usi ng M icrosoft Excel i n combi nation with SPSS so as to generate t he descript ive stat i stics for instance the frequencies as well as the percentages. The resu lts were then presented i n from of ta bles, as wel l as, figu res. The study find ings revealed that 64 percent of the respondents were male whi le 36 percent of the respondents were females. It was also ind icated from the fi nd i n gs, that majori ty of the respondents were aged between 28 and 48 years. Thi s shows cl early that the majorit y of empl oyees were yout h fu l. With regards to the n um ber of yea rs i n the organ ization, the stud y find ing indeed revea l ed t hat the majority of t he employees have been i n the organ izat ion not more than I 0 yea rs. A lso the study fi nd i ngs ind icated that majorit y of the employees (54%) were subord inates. From the find i ngs on the strategi c response to foreign exchange ri sk exposu re by com mercial ban ks i t can be concl ud ed t hat focus market (50 Percen t ), joi nt vent ures (50 percent). strategic a ll iances (64 percen t) as wel l as corporate d iversi fi cat ion (34 percent ) stood out as t he popu la r strategies used by the commercia l ban ks. The other strategi es although used com mercia l ban k. they are not very popular. The fi nd i ngs also revea l ed that a combinat ion of strateg ic a ll iances and joi nt vent ures was the best su i table. The study therefore recom mends t hat smce the bank ing i nd ust ry is indeed a growmg industry as far as globa l isat ion i s concerned. It is therefore i m portan t for organ izations to consider the various strategi c respon ses for instance strategi c a l l iances, d iversi ficat ion. d ifferent iat ion and market focus when they aim to ach ieve substant ive organ i zat ion performance. Sim i larl y it is i m portant for the Kenyan ban k i ng ind ustry to acknowled ge t hat indeed these risk exposures are real and therefore there is need to for such compan ies to conceptual i ze operat ional and financial means which are equa l l y i mportant i n the management of forei gn exchange operati ng exposure. Fina l l y the study recommends that besides the strategies used by commerci al banks, risk ma nagement object ive and involvement of both financial and operat ional departments shou ld be concept ual ized as they are important factors i n explain ing the actual real options strategies adopted by the companies as a response to exchange rate changes. en_US
dc.language.iso en en_US
dc.publisher United States International University- Africa en_US
dc.subject Family Bank Ltd en_US
dc.subject Foreign Exchange Rate en_US
dc.subject Commercial Banks' Strategic Responses en_US
dc.title An Assessment of Commercial Banks' Strategic Responses to Foreign Exchange Rate: Case Study of Family Bank Ltd. en_US
dc.type Thesis en_US


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