An analysis of factors affecting the provision of services by banks to international businesses:a case of National bank of Kenya ltd

Abstract

All aspects of business activities point towards internationalization, following the new world political and economic order. The Kenyan economy has been predominantly domestic. But the world has come and upset the erstwhile 'peaceful markets where Kenyans dealt in a great degree of certainty. Competition has intensified. A glance at various policy papers reveals that Kenya is preparing its economy for the international market in order to achieve sustainable growth. The Kenya businessman therefore does not seem to have much option but to also go out and confront the international business arena. An important aspect in business is making and/or receiving payments; and even obtaining the necessary financing. This is more challenging in international business where one may never see the customer/supplier due to the great distances involved. Banks, being custodians and mobilizers of funds become central players 111 the internationalization strategy. It is therefore important to explore how they can effectively support this process. That is the goal of this study. The study begins with the observation that poverty eradication is now a priority to the Kenya Government and policies towards the same are now being formulated. The approach that is being considered sustainable is the one that involves the stakeholders both at formulation and implementation levels; and in which the private sector is expected to play an important role. This private sector comprises, among others, entrepreneurs and financial institutions, which are custodians and mobilizers of funds. And Iurthet.more focus is on labour intensive activities that will produce [or export purposes. Due to the intricacies invo-lv.ed in the contracts, payments and . receipts of funds where international dealings are concerned it becomes necessary that banks, owing to their position in the market place, offer the support required by the international businesses. The study aims at finding out the factors that influence the provision of banking services as required by international businesses. It is further intended to propose ways of improving banking services that are provided to international businesses. This is in turn, intended to improve the international businesses.