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VOL. 6, ISSUE 1 (2024)
Investigation into the factors contributing to the poor performance of locally owned commercial Banks in Zambia
Authors
Kelvin Mutale, Attridge Mwelwa
Abstract
The study aimed to explore the factors
contributing to the poor performance of locally owned Commercial banks in
Zambia with three study objectives. 1. To determine ways in which commercial
banks shoulder the huge burden of costs in Zambia which hinders profitability.
2. To assess factors that encourage local banks performance within a
competitive banking industry of Zambia.3. To establish support measures that
the government provides to local commercial banks in Zambia. The study utilized
a mixed methods approach and a convergent research design. A non-probability
sampling design, specifically convenience sampling technique was employed to
select participants from the population. A total of 10 qualitative interviews
were conducted, and 75 questionnaires were administered to bank employees and
customers including interviews with key officials, the research unveils
demographic patterns among bank customers, shedding light on preferences,
satisfaction levels, and regulatory compliance. The study investigates customer-bank
relationships, complaint resolution efficiency, and the regulatory landscape's
effect on both local and multinational banks. The qualitative analysis findings
highlight cultural understanding, financial stability, and crisis management as
crucial factors. Additionally, the study assesses service quality, profit
status, customer base, and digital channel efficiency for local and
multinational banks, offering insights into the competitive dynamics of the
Zambian banking industry. Key findings of the study were that digital and
technology, regulatory compliance and financial stability are major factors
influencing the performance of locally owned banks in Zambia. Local banks face
challenges in meeting regulatory requirements, leverage of digital and
technology and maintaining financial stability, which hinders their growth and
competitiveness compared to multinational banks. In conclusion, the study
provides recommendations for policymakers and industry stakeholders to address
challenges and promote the growth and performance of locally owned banks in
Zambia. Overall, it offers valuable insights for understanding and addressing
the performance and scarcity of local banks in the country.
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Pages:82-95
How to cite this article:
Kelvin Mutale, Attridge Mwelwa "Investigation into the factors contributing to the poor performance of locally owned commercial Banks in Zambia". International Journal of Management and Economics, Vol 6, Issue 1, 2024, Pages 82-95
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