Role of equity bank in the promotion of international trade in Kenya

Abstract

International business transactions have been transformed by the globalization of economies which has been spearheaded by the advancement in technologies (Patricia R. Todd et al, 2004). This has led to the advancement of many banks in the promotion of trade internationally. Banks have been able to facilitate international trade by guaranteeing international payments hence reducing the risk of trade transactions; this has led to economic growth of trading countries. This study sets out to determine role of Equity Bank in enhancing international trade in Kenya. The researcher shall look into the role of the bank in offering advisory roles to international trading companies. How they facilitate trade financing and foreign exchange risk management and facilitation of international trade transactions. Commercial banks provide pre-export and preimport loans to financial intermediaries; they also facilitate the settlement of international payments. They issue letters of credit and extend similar guarantees, which reduce the risk that importers and exporters may default on their obligations to deliver or to pay. The objective of the study is to determine the role of Equity Bank in promoting international trade in Kenya. The findings aim to empower commercial banks to support international traders for mutual benefit as well as empower the traders in Kenya to carry out trade Internationally hence improving the country‘s economic condition. The study aims to use a descriptive research design with target population from Equity bank with the collection of both primary and secondary data for the research on this study. The researcher shall narrow the research to the staff working at the bank with a major focus on the section that deals with international transactions, particularly the top, middle level and lower management staff. Data collected shall be analyzed using SPSS and presented in diagrams, charts and tables. The researcher will then discuss the summaries, findings and recommendations of this study.