Bank restructuring and financial performance of Kenya commercial bank and Barclays bank of Kenya
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Date
2015-06
Authors
Journal Title
Journal ISSN
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Publisher
Daystar University, School of Business and Economics
Abstract
The purpose of this study was to find out how bank restructuring of KCB and BBK influences their financial performance. The objectives of this study were to determine the different forms of bank restructuring that have been employed by KCB and BBK; to establish whether long term benefits associated with bank restructuring outweigh its short term costs at Kenya Commercial Bank and Barclays Bank of Kenya and to determine the bank restructuring challenges faced by Kenya Commercial Bank and Barclays Bank of Kenya and how to overcome them. The study used both the primary data and secondary data. The questionnaires were administered to the selected managers and departmental heads of the two banks and later analysed using statistical package for social science. The financial performance information of the banks was derived from secondary data from the published financial statements. From the findings the study revealed that the main driver for restructuring was budgetary cuts. Further, the research findings indicated that the two banks majorly laid off excess staff and merged the departments which led to reduction of supervisory managers and middle level managers. The study found out that restructuring is benefical to the banks‟ financial performance. The findings revealed employee retrenchment as the most challenge the bank faced during restructuring and to overcome such all stakeholders should be involved in the whole process. The study concluded that restructuring in Kenya commercial bank and Barclays bank led to improved financial performance. The study recommends that there is need to look at departmental mergers because many departments increases costs and at the same time increases profitability. Moreover, since restructuring may at
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time prove unavoidable, the ultimate goal should be to eliminate non-essential company resources while minimizing the negative impact on the remaining organization.
Description
Master of Business Administration
in Finance
Keywords
Bank restructuring, Financial performance, Kenya Commercial Bank, Barclays Bank of Kenya
Citation
Kavochi, E. (2015). Bank restructuring and financial performance of Kenya commercial bank and Barclays bank of Kenya. Daystar University, School of Business and Economics