THE CATHOLIC UNIVERSITY OF EASTERN AFRICA

ACS 306 RESEARCH METHODOLOGY

GROUP 3 ASSSIGNMENT
Members
Daisy Korir 1036432
Josiphine Mwikali 1036438
Kamau F Mungunyi 1036424
Ian Linyore 1039047
Chacha Kefa 1032345
Lewis Gitonga 1039046
FACTORS AFFECTING PERFORMANCE OF BANKS CASE STUDY CHASE BANK.

Introduction
Chase Bank was started by JP Morgan in the year 1799.
It’s an International Bank of America whose headquarters are in New York.
It was established in Kenya in the year 1996. On 7th April 2016 Chase Bank was placed under
receivership by The Central Bank of Kenya. This was mainly due to under reporting of insider
loans and not meeting the statutory banking ratio.

General Objectives
The study seeks to investigate factors affecting performance of Chase Bank in Kenya

Variables
Independent variables
Weak corporate governance practices
Weakness in regulatory and supervisory systems
Poor risk management strategies
Lack of internal controls
Dependent variable
Performance of the bank

Problem statement
Chase Bank had been one of the operating banks in Kenya but at some point collapsed due to
some reasons. This was due to under reporting of insider loans and not meeting the statutory
banking ratios, weak corporate governance practices, weakness in regulatory and supervisory
systems poor risk management strategies and lack of internal controls and conflicts.

Identify specific objectives

To evaluate the effects of weak corporate governance practices in Chase Bank.
To establish the effects of under reporting of insider loans and not meeting the statutory
banking ratios in Chase Bank.
To determine the effects of poor risk management strategies in Chase Bank.
To evaluate the effects of lack of internal controls and conflict in Chase Bank.

Identifying the research questions

What are the effects of weak corporate governance practices in Chase Bank
What are the effects of under reporting of insider loans and not meeting the statutory banking
ratios in Chase Bank
What are the effects of poor risk management strategies in Chase Bank
What are the effects of lack of internal controls and conflict in Chase Bank

Justification of the research study

Dissecting on the challenges faced by Chase Bank will help on other institutions not to follow
the same route leading them to collapsing.
It will also act as a point of literature to students.

Scope of the research study

The target population was 58 Chase Bank branches in Nairobi Kenya but however the
population being too large sampling was done and came up with 13 branches.

Limitations
Limited study time
Slow respondents
Budget constraints

Methodology
Data collection
Primary data was collected through questionnaires to the managers and interviews.
Secondary data was collected from published sources.
Data analysis
Descriptive data analysis was through mean, variance and standard deviation
Presentation by graphs.