Financial Trade's Impact on Banks' Financial Performance: A Case of Equity Bank Limited
Keywords:
Trade Finance. Letter of Credit, Bill of Exchange, Equity Bank, Financial Performance.Abstract
Aim: The purpose of this study is to examine the impact of trade financing on banks' financial performance. In this study, Equity Bank Limited was used as a case study.
Methods: In this case study, a descriptive research design was used. The intended audience consisted of 66 Equity Bank Limited credit supervisors, one from each branch. Out of the total of sixty-six credit supervisors, at least thirty-three were selected using the stratified selection approach to handle 50% of the population. Used were both primary and secondary data from financial statements that were released. Sorting, cleaning, and organizing the data from the completed surveys were all parts of the data analysis process. The data was coded, put into a spreadsheet, then put through an SPSS analysis. Tables, graphs, and pie charts were then used to show the data.
Results: The research revealed that the bank's supply of trade financing products had an impact on its financial performance through the revenues generated as a result of such service, according to the analysis, presentation, and interpretation of the data.
Conclusion: The provision of trade finance by banks has an impact on their financial performance.
Recommendation: The study suggested that the bank train its employees to increase their skill levels, create more complex and welcoming trade finance procedures to encourage more clients to participate, and capitalize on less common items. It was advised to conduct further research on how trade financing affects banks' overall performance.
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