Regional integration and banking industry in East Africa community

Abstract

The main objective of this study was to investigate the concept of Regional Integration and Banking Industry in East Africa Community. Banks in Nairobi County that are found in East Africa Community are in a good position to give the information required for our study. The study relied on primary data which was collected using open and close questionnaires developed in line with the objectives of the study and analyzed to draw the conclusion of the study finding both quantitative and qualitative techniques were applied in data analysis. Sample was selected using a systematic random sampling. According to Mugenda and Mugenda (2003) a sample of 30% and above is considered representative for a population less than 500. Data was collected from 15 banks and the results were presented in tables, figures and content delivery to highlight the major findings. They were also presented sequentially according to the research questions of the study. Mean scores and standard deviations analyses were used to analyse the data collected. The raw data was coded, evaluated and tabulated to depict clearly the factors affecting banking industry in regional integration. The findings indicate that the rapid growth of population, requirement of banking services and economic markets increasing foreign investors have brought the banking industry in regional integration to the situation of a large industry having a significant place in regional development. The research recommended that Regional integration the banking sector is extremely important given the pivotal role that banks play in the provision of credit, the transmission of monetary policy and the maintenance of systemic stability. Nonetheless, research on banking sector competitiveness includes very few countries and only Kenya from the EAC sub-region