Economic Crisis and the Effect on Qatar's Bank Sector - Research Proposal Example

Economic Crisis and the Effect on Qatars Bank Sector Submitted by: XXXXXXXXX Number: XXXXXXXX of XXXXXXXXX XXXXXXX Subject: XXXXXX Subject Code: XXXXXXX Date of Submission: XX – XX – 2010 Table of Contents Economic Crisis and the Effect on Qatars Bank Sector 0 Submitted by: XXXXXXXXX 0 Student Number: XXXXXXXX 0 University of XXXXXXXXX 0 Tutor’s Name: XXXXXXX 0 Subject: XXXXXX 0 Subject Code: XXXXXXX 0 Date of Submission: XX – XX – 2010 0 Table of Contents 1 1. Introduction 2 2. Preliminary Literature Review 3 3. Methodology 5 4. Proposed Timelines 10 Bibliography 12 1. Introduction Conducting a research involves a lot of work and requires good planning before executing the research. There are four main steps that need to be followed for a research. These include: a) Defining the research, b) Designing the research, c) Doing the research and d) Describing the research (Jobber, 2004). Since market research plays such an important role in the success of any study, this paper aims at discussing the first two steps of the research process and will detail the research design that will be adopted to study the topic of the economic crisis in Qatar’s Bank Sector. 1.1 Topic Chosen The working title of the paper is as follows: ‘A Research into the Economic Crisis and the Effect on Qatars Bank Sector’. 1.2 Aims and Objectives of Research The main area of research as the name suggests is a study of the economic crisis that has been faced in Qatar and to bring out the effect of the economic crisis on the Banking sector of the country. The main research objectives of the study are as follows: a. Understanding the economic crisis that hit the country b. Analyzing the impact of the economic credit crunch on the Bank Sector c. Understanding the possible measures that the banks can take to overcome the crisis d. Overall responsibility of the financial authorities in the economic conditions 1.3 Rationale of Research With the entire world being faced with intense and immense decline and economic crisis, it is important to study the crisis of a country and to work towards developing the possible measures to overcome the crisis. It is in the interest of the country that the studies are undertaken and is mainly to help find the views of the various individuals in the field and to learn and analyze the possible solutions for the problems. 2. Preliminary Literature Review 2.1 Sources of Literature Several different sources of literature will be chosen for this study. A few of the articles that will be used for this study have been included in the bibliography section. Careful selection has been made to ensure that the literature being used ids authentic and reliable. The main focus of the literature sources are on the academic articles and journals, which helps ensure valid and reliable review of literature. 2.2 Relevance of Topic The topic is of high relevance and of high importance as any crisis to the banks and the banking sector can lead to impact the overall economy of a country and can also have a major impact on the overall gross domestic profit of the country as well. In the current situation with the high crisis that is being faced by almost all countries, this is a very effective and viable topic to be chosen for the study of Qatar. 2.3 Summary of Literature The major theories and topics that will be discussed here in the paper include the crisis management and the global financial crisis and the knowledge management sessions that have been organised by Doha Bank. In an event conducted by Doha bank, H.E. Sheikh Abdulla Bin Saud Al Thani, Governor Qatar Central Bank was present as the chief guest, he explained, ‘At the macro level, the economy has achieved a real growth estimated at 16 % in 2008, and growth is projected to continue in 2009 at a rate of 7% at a time when the developed economies are expected to slow down their growth to a rate not exceeding 2% in the year 2009. The real growth rates in the GCC are also not expected to exceed 2% in 2009 according to the outlooks of the IMF. The optimistic outlook related to the Qatari economy is based on the mega projects to be achieved during the next three years in the gas, petrochemical and other sectors’ (IFP, 2009). Details like these and theories of the possible effects on the banks will be discussed in the paper. The literature will also focus in brief on various elements of the economic conditions which include the impact of the financial crisis on the oil and non oil producers following which a detailed focus will be on the various reports that have been presented over the past that relate to the performance of the banks in Qatar post economic turndown. Reports from various organisations like Fitch Ratings, will be discussed. For instance, a report by Fitch Ratings explained, “Qatari banks have emerged relatively unscathed from the global financial crisis and regional downturn displaying strong financial profiles, although high credit risks, taken during the lending boom, continue to pose some challenges for the sector,” (Augustine, 2010). Similar reports and articles will be used to provide a complete and holistic view of the current situation within the country and the local banks of the country. 3. Methodology 3.1 Rationale of Methodology As discussed earlier, the research has a major importance especially in the current world and the current economic crisis that is being faced by almost all countries around the world. The investigation for this study involves a combination of primary and secondary research. The main intension of this is to ensure that secondary research that is conducted can be supported with the real life conditions. The secondary research will provide a theoretical basis for the study and the qualitative research will provide a level of validity to the research. With the positivistic paradigm, the emphasis is on using measurement to find out the relationships between facts and causes of the phenomenon. This is “an essential element of the research process under this paradigm” (Collis & Hussey, 2003, p. 57). This approach is useful when there is a need to conduct statistical analysis (Collis & Hussey, 2003, p. 56). A positivistic approach will be used and the researcher will be independent, will not be influenced by the subject of research, and will take “the role of an objective analyst” (Saunders & Lewis & Thornhill, 2000, p. 85). The major reason for this method as a choice for the study is because, quantitative researchers focus on the measurement and analysis of facts and causes. According to Denzin & Lincoln (cited in Silverman 2005), “qualitative investigators think they can get closer to the actor’s perspective through detailed interviewing and observation” (p. 10). With qualitative researchers, the emphasis is on the close relationship between the subject of research and the researcher where the value is in the social reality and the meaning of the social event or phenomenon. The qualitative approach relies on the quality and depth of data and does not focus on the “measured (if measured at all) in terms of quantity, amount, intensity, or frequency” (Denzin & Lincoln, 2000, p. 8). In addition, as Waters (2001) explains, the quantitative approach is based on “simplified representations of reality where real features are depicted by symbols” (p. 8). The main benefits of choosing a quantitative approach to this research are as discussed below. Firstly, this method allows stating of the research problem in very specific and clear terms. Also there is a clear possibility to follow the original research objectives that have been set down and to arrive at more conclusive conclusions. Also this method provides a chance to clearly lay down all the elements of the research to identify the main issues and the clear solutions to the problem. The information gained from this method is generally very fair and realistic. Also since this method involves gaining the views of the actual target markets, it reduces the chances of any subjective judgment on the topic and thus minimizes the chances of any irregularities in the research findings. The main factors that make in depth interviews more useful than any other possible research for this dissertation is that: a. Since there are open-ended questions, it does not allow the respondents to reply in yes or no, which is very essential; since the subject is one which requires the views of the participants and requires a proper understanding of the topic. b. Even though the presence of the pre decided questions, the possibility to probe is higher. The conversation can go into a more detailed discussion on one particular topic and can omit out any other question that has been answered already. The understanding is much higher, since if in doubt the questions can be dealt with in a more detailed manner. 3.2 Questionnaire Design Questionnaires are one of the best forms of research methods as they are relatively inexpensive and have a potential to gain large number of respondents. In a number of cases this is the only suitable method for research and is a feasible way to reach a number of reviewers large enough to allow statistically analysis of the results. It is known that a well designed questionnaire can prove to be very beneficial to the research and can be used effectively to gather information. Also questionnaires with demographic questions can be used to gain correlation information of the participants (Jobber, 2004). There are a number of steps that are involved in designing a questionnaire and each step of the design process needs careful attention and examining to ensure the best results are gained. The various steps that are involved can include, firstly, defining the objectives of the research. Secondly, determining the sample group, then the questionnaires can be written out and the administered following which the results can be interpreted. 3.3 Sampling Strategy The main aim of the qualitative research is to meet the managers from banks or to contact them over telephone and to gain their views on the topic. It is intended to gain as many as at least 10 interviews from the bankers. The sample will be chosen from a few of the major banks, these might include, Qatar National Bank, Doha Bank Limited, HSBC Qatar, Standard Chartered Bank Qatar, and United Bank Limited. These are a few of the intended banks, however other banks will also be tried as it is quite difficult to get the managers to participate in the interviews. Since the initial aim is kept at a high level, the chances of achieving at least 5 interviews are possible which will help provide a valid and reliable study. The sampling technique that is used in the survey would be non-probability sampling. A non probability sample is one where the sample or the respondents are not selected randomly. Instead, the respondents are chosen by the researcher on the basis of certain criteria that the researcher themselves assigns (Bartlett et al., 2001). Further, there are certain criteria that an individual needs to satisfy in order to qualify as a respondent. On the basis of the chosen criteria, the non probability technique can be further divided into techniques like convenience, judgmental, quota and snowball sampling (Salganik et al 2004). Out of these judgmental sampling is an appropriate method here. In judgmental sampling the respondents are selected based on the judgment of the researcher, and to match the fact that this research focuses on a particular segment of the student population (Bartlett et al., 2001). 3.4 Example Questionnaire The questionnaire will be designed once the literature review has been completed and all the information relating the study has been sought. However a few of the example questions that may be a part of the interview questionnaire include: a) What do you think are the factors that might affect the banking sector in Qatar? b) Do you think that the Qatar banking industry has been impacted by the economic crisis? 3.5 Pilot Research: The research is quite vast hence a pilot testing will be undertaken at first. This is a mini version of the actual research and is also referred to as the feasibility study. The main aim here is to test the questionnaire and the research design that is used to ensure that the results are focused and reliable. To do the pilot testing of the research, a sample of 10 people has been chosen and the questionnaire was provided to them to respond to. This was mainly to check for their responses and also to gain a better feel of the customer reaction to the research. Once this was conducted it was easier to gain a feel of the public and their views and choices. Also since the responses for the pilot testing was positive with a good number of people willing to undertake the survey, it was clear that the questionnaire survey would prove to be well received by the market sample as well. This method is very important for a successful research as it also the researcher to ensure that the research instruments are well developed and works effectively. In this case it allows ensuring that the questions being asked are clear and are being responded to in the right direction. It can refer to so-called feasibility studies which are "small scale version[s], or trial run[s], done in preparation for the major study" (Polit et al., 2001: 467). 3.6 Data Collection: The data collection method that will be adopted here for this case is the use of qualitative research. The researcher will use in – depth interviews as a method to collect the information. Although there are a number of ways that can be adopted for conducting the qualitative research, the researcher has chosen the in – depth interviews here as this method permits a deep understanding of the key issues and the topic in question. Here in this method, the questions are open ended, investigation oriented and semi formal. This is best suited for the higher end target audiences. In – depth interviews is also a more feasible idea when the audiences is a lesser number (Jobber, 2004). This method has mainly been chosen considering the benefits of the methods, i.e. it encourages the participants to include deeper insights on the topic, and also allows the researcher to cross question and drill further into the responses, which thereby permits better understanding of the topic (Jobber, 2004). Since this is a goal-oriented and open-ended program, the outcomes of these give a vital base to the findings of the study. Moreover, as the name suggests, it gives an in-depth understanding of the key issues. In the case of this research, other forms of data collection have not been used as they do not provide the benefits that the in depth interviews provide and can also to a great extent form a distraction and can lead to unrelated research aspects (Jobber, 2004). For instance, conducting a focus group here will not help bring out the details of the interviewees and can also lead to lesser information for the research findings. Similarly, conducting a quantitative research would lead to unrelated responses and will not have a strong number of respondents which would make the research less valid and reliable (Jobber, 2004). 4. Proposed Timelines Particulars Time Background Reading 2 weeks Literature Review 3 weeks Research Process and Research Methodology 4 weeks Analysis of Findings 1 week Conclusion 1 week Editing and Proof Reading 1 week Bibliography "Qatar pumps about 14 billion dollars to counteract economic crisis." BBC Monitoring International Reports 13 July 2009. Academic OneFile. Web. "Qatari paper assesses exposure of economic institutions to Dubai crisis." BBC Monitoring International Reports 1 Dec. 2009. Academic OneFile. Web. Augustine, B.D, 2010, ‘Qatari banks emerge stronger than their peers from the crisis’, 6th September 2010, Accessed on 3rd October 2010, Retrieved from http://gulfnews.com/business/banking/qatari-banks-emerge-stronger-than-their-peers-from-the-crisis-1.678037 Beesley, M. & Evans, T., 1978, ‘Corporate social responsibility’, GB: British Library Cataloguing in Publication Data Berry, R., 2004, ‘The Research Project’, 5th edition, New York: Routledge Black, T. R., 1999, ‘Doing Quantitative Research in the Social Sciences: An Integrated Approach to Research Design, Measurement and Statistics’, London: Sage Publications Ltd Collis, J. & Hussey, R., 2003, ‘Business Research: A practical guide for undergraduate and postgraduate students’, 2nd edn. London: Macmillan Press Ltd Coulson, A., 1998, ‘Trust and Contracts’, Bristol: The Policy Press. Denzin, N. K., & Lincoln, Y. S., 2000, ‘Handbook of Qualitative Research’, 2nd edition, London: Sage Publications, Inc Hargreaves, J. & Dauman, J., 1975, ‘Business Survival and Social Change’, New York: John Wiley & Sons Inc Heffernan, S. (2006) Modern Banking. England: John Wiley & Sons Ltd IFP, 2009, ‘Global Financial Crisis and Opportunities for Qatar knowledge sharing session organized by Doha Bank’, 12th March 2009, Accessed on 5th April 2010, Retrieved from http://www.ifpqatar.com/news.php?id=5055 Johnson, G., Scholes, K., and Whittington, R., 2008, ‘Exploring corporate strategy’, 8th edition, Harlow: Pearson Education Limited Kerr, Simeon, and Robin Wigglesworth. "Qatar pledges to increase stakes in local banks." Financial Times 14 Oct. 2008: 12. Academic OneFile. Web. Lewis, M. K. & Davis, K. T, 1987, ‘Domestic & International Banking’, London: Philip Allan Martin, Matthew. "Credit crisis drives up financing costs." MEED: Middle East Economic Digest 52, no. 3 (January 18, 2008): 12. Business Source Complete, EBSCOhost Saunders, M., & Lewis, P. & Thornhill, A., 2000, ‘Research Methods for Business Students’, 2nd edition, Harlow: Pearson Education Limited Schreiber, J., 2008, ‘The Bank’s Right to set off and how it affects you’, Retrieved from http://www.schreiblaw.com/pdf/Bank_Offset.pdf Sekaran, U., 2000, ‘Research Methods for Business, A Skill-Building Approach’, 3rd edition, New York: John Wiley & Sons Inc Silverman, D., 2005, ‘Doing Qualitative Research’, 2nd edition, London: Sage Publications Sloman, J., 1997, ‘Economics’, 3rd edition, Hertfordshire: Prentice Hall Europe Waters, D., 2001, ‘Quantitative Methods for Business’, 3rd edition, Harlow: Pearson Education Limited Read More