Nthenge, Magdalene Nzila2013-08-272013-08-272013-08-27http://ir-library.ku.ac.ke/handle/123456789/7132HG 3881 .N72This research project sought to find out the effects of trade finance on the financial performance of banks; a case study of Family Bank limited. The research project was divided into five chapters as follows: the first chapter dealt with a general overview of the trade finance, significance of the study to various stakeholders, scope and delimitation and definition of terms. The second chapter entailed review of different literature works done in relation to trade finance ".""', .: which included the theoretical review, literature review and conceptual framework. The third chapter basically concerned itself with research design, site description, target population, research instruments, data collection and analysis procedure. The fourth chapter was data presentation, discussion and interpretation of findings, while the last chapter dealt with summary, conclusion, recommendation, limitations and suggestions .The main objective of the study was to find out the effects of trade finance on the banks financial performance. It was guided by three research questions: what are the effects of letters of credit to the financial performance of the banks, how does guarantees affect the financial performance of Family Bank and lastly, what are the effects of collections to the banks fmancial performance? This was a case study which took a descriptive research design. The targeted population was sixty six credit supervisors of Family -, Bank limited, one from each branch. Stratified sampling technique was used to choose at least thirty three credit supervisors out of the total sixty six credit supervisors to manage a half of the population. Primary and secondary data that was published as financial statements was used. Data analysis included sorting, cleaning and organization of data from the filled questionnaires. The information was coded and entered into a spread sheet and analyzed using SPSS (statistical package fur social sciences). Data was then presented using tables, graphs and pie charts. Arising from the data analysis, presentation and interpretation, the research indicated that provision of trade fmance products by the bank affected its financial performance through the revenues raised due to its provision. The researcher recommended that the bank should carry out training on staff to improve on their skills, make more elaborate and friendly procedures to allow more customers to participate in trade finance and leverage on the products which were not frequently offered. Further research on the effects of trade finance on overall banks performance was recommended.enThesis