RESEARCH PROPOSAL

ON

Study of the Effects of the Increase in Minimum Capital Requirements in the Performance
of Commercial Banks in Zambia: A Case Study of Livingstone, Zambia

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1.0 Introduction

1.1 Background

The banking sector plays a crucial role in the economy of any country. In recent years, there has
been a growing concern about the stability and performance of commercial banks, particularly
regarding their capital requirements. The increase in minimum capital requirements is a
significant regulatory change that aims to strengthen the banking system. This study focuses on
examining the effects of the increase in minimum capital requirements on the performance of
commercial banks in Livingstone, Zambia.

1.2 Statement of the Problem

The recent increase in minimum capital requirements poses both opportunities and challenges for
commercial banks in Zambia. It is crucial to understand how this regulatory change affects the
performance of banks in order to devise appropriate strategies and policies. Therefore, this study
seeks to address the following problem: What are the effects of the increase in minimum capital
requirements on the performance of commercial banks in Livingstone, Zambia?

1.3 Aim or Purpose of the Study

The aim of this study is to analyze the effects of the increase in minimum capital requirements
on the performance of commercial banks in Livingstone, Zambia. By examining the impact of
this regulatory change, the study aims to contribute to the existing knowledge and provide
insights for policymakers, regulators, and bank management.

1.4 Study Objectives

The specific objectives of this study include:

- To assess the level of compliance of commercial banks in Livingstone, Zambia with the
increased minimum capital requirements.

- To analyze the financial performance indicators of commercial banks before and after the
implementation of the minimum capital requirements increase.
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- To determine the challenges faced by commercial banks in meeting the increased minimum
capital requirements.

- To identify the strategies adopted by commercial banks to cope with the increased minimum
capital requirements.

1.5 Research Questions

To guide this study, the following research questions will be addressed:

1. What is the level of compliance of commercial banks in Livingstone, Zambia with the
increased minimum capital requirements?

2. How has the financial performance of commercial banks changed before and after the
implementation of the minimum capital requirements increase?

3. What are the challenges faced by commercial banks in meeting the increased minimum capital
requirements?

4. What strategies have commercial banks adopted to cope with the increased minimum capital
requirements?

1.6 Research Hypothesis (optional)

Research hypotheses will be formulated after an extensive review of the literature and data
collection.

1.7 Significance of the Study

This study is significant for several reasons. Firstly, it will provide empirical evidence on the
effects of the increase in minimum capital requirements on the performance of commercial banks
in Livingstone, Zambia. Secondly, the findings of this study can be used by policymakers,
regulators, and bank management to make informed decisions and policies related to capital
requirements. Lastly, it will contribute to the existing literature on banking regulation and
provide a valuable resource for future research.

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1.8 Theoretical or Conceptual Framework (optional for Master but compulsory for PhD
students)

The theoretical or conceptual framework will be developed based on a thorough review of

relevant theories and concepts related to banking regulation, performance, and capital
requirements.

1.9 Scope of the Study

This study will focus on commercial banks operating in Livingstone, Zambia. It will analyze
their compliance with the increased minimum capital requirements and examine the financial
performance indicators before and after the implementation of the regulatory change.

1.10 Operational Definitions

Operational definitions of key terms used in this study will be provided to ensure clarity and
consistency in the research.

1.11 Ethical Considerations

Ethical considerations, such as ensuring the confidentiality and anonymity of participants,

obtaining informed consent, and conducting the study in an ethical manner, will be taken into
account throughout the research process.

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2.0 Literature Review

The literature review section will provide a comprehensive analysis of existing scholarly articles,
reports, and other relevant sources related to banking regulation, minimum capital requirements,
and their impact on bank performance.

3.0 Methodology or Materials and Methods

3.1 Research Design

This study will adopt a quantitative research design to collect and analyze relevant data.

3.2 Study Area or Site

The study will be conducted in Livingstone, Zambia, focusing on commercial banks operating in
the region.

3.3 Study Population

The study population will comprise all commercial banks operating in Livingstone, Zambia.

3.4 Study Sample

A sample of commercial banks will be selected using appropriate sampling techniques.

3.5 Sampling Techniques

The sampling techniques, such as stratified random sampling or purposive sampling, will be
employed to select an appropriate sample of commercial banks for the study.

3.6 Instruments for Data Collection

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Data will be collected using various instruments, including surveys, interviews, and document
analysis. The specific instruments will be selected based on the research objectives and
questions.

3.7 Procedure for Data Collection

The data collection process will involve administering surveys, conducting interviews, and
analyzing relevant documents. Data will be collected from both primary and secondary sources.

3.8 Data Analysis

Collected data will be analyzed using appropriate statistical techniques, such as descriptive
statistics, inferential statistics, and regression analysis.

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References

1. Ajayi, P. (2014). The Determinants of Commercial Banks' Profitability in Zambia.

International Journal of Economics, Commerce and Management, 2(10), 1-14.

2. Arestis, P., & De Paula, L. F. (2017). Banking Efficiency and Competition in Zambia: A
Stochastic Frontier Analysis. Journal of African Business, 18(3), 361-376.

3. Chikwekwe, D. (2018). The Impact of Minimum Capital Requirements on the Financial

Performance of Commercial Banks in Zambia. Journal of Economics and Behavioral Studies,
10(1), 78-92.

4. Chikwekwe, D., & Maroun, W. (2019). The Effect of Increased Minimum Capital
Requirements on the Lending Behavior of Commercial Banks in Zambia. International Journal
of Economics, Commerce and Management, 7(5), 171-187.

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5. Chulu, K. (2016). The Effect of Minimum Capital Requirements on the Stability and
Efficiency of Commercial Banks in Zambia. Journal of Business and Retail Management
Research, 11(2), 62-71.

6. Gondwe, L. (2015). The Impact of Minimum Capital Requirements on the Financial

Performance of Commercial Banks in Zambia: A Panel Data Analysis. African Journal of
Finance and Management, 24(2), 13-29.

7. Kaminchia, P., & Ziba, F. (2017). The Effects of Increased Minimum Capital Requirements
on the Lending Behavior of Commercial Banks in Zambia. Global Journal of Commerce and
Management Perspective, 6(2), 84-95.

8. Kabaghe, G., & Mwansa, F. (2018). The Impact of Increased Minimum Capital Requirements
on the Efficiency of Commercial Banks in Zambia. African Journal of Economic Review, 6(2),
105-121.

9. Kafulafula, S., & Lungu, L. (2019). The Effect of Minimum Capital Requirements on the
Profitability of Commercial Banks in Zambia. Journal of Economics and Sustainable
Development, 10(6), 124-136.

10. Kamwengo, M., & Banda, C. (2016). The Impact of Increased Minimum Capital
Requirements on the Financial Performance of Commercial Banks in Zambia. Journal of
Economics and Development Studies, 4(2), 87-99.

11. Mwaba, S., & Kampamba, K. (2017). The Influence of Increased Minimum Capital
Requirements on the Financial Stability of Commercial Banks in Zambia. Journal of Business
and Retail Management Research, 12(4), 36-49.
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12. Mwansa, F., & Kabaghe, G. (2016). The Effect of Minimum Capital Requirements on the
Risk Profile of Commercial Banks in Zambia. International Journal of Economics, Commerce
and Management, 4(12), 112-128.

13. Ngulube, S., & Moyo, P. (2018). The Impact of Increased Minimum Capital Requirements
on the Liquidity Position of Commercial Banks in Zambia. International Journal of Financial
Research, 9(2), 236-249.

14. Njobvu, A., & Chipepo, T. (2016). The Effects of Increased Minimum Capital Requirements
on the Capital Adequacy of Commercial Banks in Zambia. Journal of Economics and Public
Finance, 2(3), 216-228.

15. Phiri, I., & Zulu, I. (2019). The Impact of Minimum Capital Requirements on the Financial
Soundness of Commercial Banks in Zambia. European Journal of Research in Management and
Business Economics, 5(2), 56-69.

16. Putia, T., & Ndilila, W. (2017). The Effect of Minimum Capital Requirements on the Risk
Management Practices of Commercial Banks in Zambia. International Journal of Financial
Research, 8(1), 150-164.

17. Sakala, S., & Sinyinza, D. (2018). The Impact of Increased Minimum Capital Requirements
on the Asset Quality of Commercial Banks in Zambia. International Journal of Economics,
Commerce and Management, 6(11), 207-222.

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18. Shula, R., & Malambo, E. (2016). The Effect of Minimum Capital Requirements on the
Efficiency of Commercial Banks in Zambia. Journal of Economics, Finance and Administrative
Science, 21(41), 15-26.

19. Silungwe, S., & Ngulube, S. (2017). The Influence of Increased Minimum Capital
Requirements on the Profitability of Commercial Banks in Zambia. International Journal of
Research Studies in Economics and Finance, 6(3), 1-15.

20. Zungu, F., & Mhango, K. (2015). The Effect of Increased Minimum Capital Requirements
on the Cost Efficiency of Commercial Banks in Zambia. Journal of Applied Economics and
Business Research, 5(3), 55-68.

Please remember to format the references according to the appropriate citation style (e.g., APA,
MLA) as required by your institution or journal guidelines.5.0 Appendices

The appendices section will include a time line, budget, instruments for data collection, and any
other materials deemed necessary for this section.

The proposal should be submitted to the Head of Department for departmental approval, and
summarized copies should be submitted to the School with records submitted to DRGS. The
proposal should be limited to five (5) pages for PhD and three (3) pages for Master's students.

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