Competitiveness of Banks (Research Proposal Sample)

Competitiveness among the banks in the United Kingdom, prior to and after the global financial crisis
Name of student
Registration number
Date
DECLARATION
I declare that this is my original work and has not been submitted for examination to any other institution of higher learning.
Declaration by the Supervisor:
This proposal has been presented for examination with my approval as the supervisor
DATE SIGNATURE
….. …………………. …………………..……..

DEDICATION
I dedicate this project proposal to my dear parents and my brothers and dear friends whose words and patience have been our source of encouragement and inspiration.
Acknowledgement
I would like to convey my thanks to everyone who gave me advice on how to go about this proposal. Special thanks goes to my supervisor for his useful advice, as well as suggestions. In addition, I would like to take this opportunity to convey my sincere appreciation and gratitude to the Almighty God for his blessings and guidance while undertaking this whole process. He gave me good health, as well as wisdom hence enabling me to accomplish this project proposal in good time.
Background of the study
Competitiveness can be defined as the performance, as well as the capacity of a given company, sub-sector or a nation to sell or to supply services and goods within a market, in relation to the capacity, as well as the performance of other different firms, sub-sectors or nations in similar markets ((Berger and Udell, 1990, p. 24). According to Paravisini (2008, p. 34), the term competitiveness is also applicable to markets, where it is applied when referring to the degree to which the structure of the market may be said to be perfectly competitive. It is worth noting that banks within the United Kingdom are capable of remaining in the market only when they are competitive enough. Peek and Rosengren (1997, p. 23) state that Competitiveness of firms is affected by a number of factors. The global economic and financial crisis significantly affected the business environment and this impacted on the performance of a number of business organizations globally, including the banking institutions within the United Kingdom. This paper explores the competitiveness of banks within the United Kingdom before and after the economic crisis. It also looks at some of the various strategies that can be applied by the banks within the United Kingdom in order to enhance their competitiveness.
Statement of problem
The competitiveness of business organizations plays a major role in enhancing the profitability of business organizations. There are a number of ways through which the competitiveness of business organizations can be enhanced. In addition, there are a number of factors that affect the competitiveness of business organizations. The global economic crisis, to a great extent affected the performance of business organizations globally. The banking institutions within the United Kingdom were also hit by the crisis. The performances of the banks were thus affected significantly. It is worth noting that banking institutions play a major role in the economy of any nation. Their competitiveness is therefore of great concern. This study is therefore aimed at establishing the factors that influences competitiveness of banks within the United Kingdom, to establish the effects of global economic crisis on the competitiveness of banks within the United Kingdom and also to establish ways of increasing competitiveness among banks after the global economic crisis.
Objectives of the study
The broad objective of this research will be to establish the competitiveness among the banks in the United Kingdom, prior to and after the global financial crisis. The general objectives of this study will be:
To find out the factors affecting competitiveness of banks within the United Kingdom.
To establish the effects of global economic crisis on the competitiveness of banks within the United Kingdom
To establish ways of increasing competitiveness among banks after the global economic crisis.
Research Questions
Which are the factors affecting competitiveness of banks within the United Kingdom?
What are the effects of global economic crisis on the competitiveness of banks within the United Kingdom?
What are some of the ways of increasing competitiveness among banks after the global economic crisis?
Research aim
The major aim of this research will be to establish the factors affecting the competitiveness of banks within the United Kingdom prior to and after the global economic and financial crisis. It will also look at some of the causes of the global economic crisis and how it impacted on the competitiveness of banks within United Kingdom.
Justification for the study
There are a number of benefits that are generated by banking institutions to the economy of the United Kingdom. It is worth pointing out that banks, as well as other financial institutions play very critical roles through performing services that are highly vital to the functioning of the economy of the United Kingdom. For instance, banks safeguards, transfers, lends, and exchanges money in numerous forms. In addition, banks evaluate the creditworthiness of customers. These are very critical in shaping the economy of the United Kingdom. All of these roles have ripple effect within the economy as they help in keeping money moving.
The health of the economy of the United Kingdom and the health of banks cannot be separated. The activities that are performed by banks significantly influence all the sectors of the economy of the United Kingdom. In addition, as seen through the Global Financial Crisis, UK’s financial system is a foundation of the economic resilience of the nation. Additionally, the continued profitability and strength of UK’s financial system depend on the robust economic growth of the country.
The competitiveness of the banking institutions within the United Kingdom is therefore a matter of concern. The global economic and financial crisis to a great extent impacted on the competitiveness of the banks within the United Kingdom. This paper, therefore seeks to establish some of the ways through which the competitiveness of the banks were affected.
The study is important to a number of authorities within the United Kingdom. The information offered by the study will be highly useful in making the banking institutions within the United Kingdom to be highly competitive. In addition, it will enhance the performance of the banks and hence their competitiveness in the globally challenging business environments. In this regard, it will also enhance the economic growth f the economy of the United Kingdom. In addition, the study will also be of significance to a number of scholars because they will be able to get much information concerning the banking industry of the United Kingdom, as well as the factors that effects competitiveness of the banking institutions. This can form a basis for further studies on the banking industry within the United Kingdom.
Abstract
The main purpose of this research will be to explore the competitiveness among the banks in the United Kingdom, prior to and after the global financial crisis. The specific objectives of the study will be to find out the factors affecting competitiveness of banks within the United Kingdom, to establish the effects of global economic crisis on the competitiveness of banks within the United Kingdom and to determine the ways through which banks in United Kingdom can regain their competitiveness after the global economic crisis. The theoretical literature will explore competitiveness of banks among banks in the United Kingdom before and after the global economic crisis. The research will apply descriptive research design. The target population will be banks within the United Kingdom.
Introduction
The impacts of the global financial crisis were very severe on the banking institutions. Numerous banking institutions went bankrupt as a good number also were in distress because of their sensitivities, which are stored in balance sheets. A good number of them were also in distress because of the financial risks which were enlarged as a result of the the crisis. On the converse, certain banks slightly experienced the effects. A highly competitive banking sector is viewed to be a highly significant element of economy within market economies. The banking sector in the United Kingdom is categorized as a branch of economy, which has undergone the vital, quantity, quality, as well as dynamic changes. The processes of privatization and recapitalization, mergers, acquisitions, and international integration contributed considerably to the establishment of a modernized banking sector, as well as to the upsurge of a globally competitive environment.
It is worth noting that possible instability problems of the banking sector are capable of generating negative effects on the development of entire economy evidenced by the financial crisis.
An Overview of the European Banking System
During the past decade, the banking sector of the United Kingdom witnessed substantial changes due to technological improvements such as innovative, as well as sophisticated instruments, which might have resulted into highly leveraged conditions of the market, plentiful global liquidity that appeared as a boom in the prices of commodities, integration and deregulation. In order to remain competitive, a number of banks within the United Kingdom have looked for ways of enhancing their efficiency, as well as profitability through trying to ge...