Theses and Dissertations
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Item Effect of Internal Factors on Financial Performance Of Banks Listed at the Nairobi Securities Exchange(KCA University, 2017) Mananda, Jones J.O.This study seeks to establish the effect of internal factors on financial performance of banks listed at the Nairobi securities Exchange in Kenya. The study focussed on all 11 banks that are listed at the Nairobi securities exchange over 8-year period from year 2009 to year 2016. The study used panel data regression model to analyse the panel data. The researcher carried out various diagnostic tests to rule out the problems of autocorrelation, multicollinearity and heteroscedasticity. Hausman test revealed that random effects model was to be used in this study. The study findings indicate that management efficiency is significant and is positively correlated with return on assets while earnings ability is positively related but insignificant. Capital adequacy, Asset quality and liquidity were found to be insignificant and negatively related to return on assets. Management efficiency and earnings ability which are both positively correlated to performance of commercial banks should be given adequate attention in terms of resource provision and monitoring. By doing so performance of banks listed at the Nairobi Securities Exchange shall improve and this will attract more investors in the Securities market and ultimate growth in the economy as there will be a multiplier effect. The finding of this study agrees with some of the previous researchers and differs with other researchers.Item Effect Of Bank Specific Factors On Income Diversification Of Listed Commercial Banks In Nairobi Securities Exchange.(Kca University, 2021) Maina, Erick M.Banking industry is a very critical industry in economic affairs of any given country not to mention the global economic affairs. Bank run in one country if not well controlled can quickly degenerate into a banking crisis and in the long run into a contagion either locally, regionally or even globally. Supervision and examination of banks using the recommended bank specific factors by CAMELS Model comes in handy to ensure all regulations and requirements are followed. This ensures the banks continues to offer their intermediation services as required. The rise in regulation of traditional income sources of commercial banks, industry deregulation and technology changes has allowed non-bank institutions to offer stiff competition to the banks especially in the traditional income space. This has made commercial banks to shift to non-interest incomes in order to supplement the incomes lost. This study therefore sought to understand how bank specific characteristics influence commercial banks in diversifying incomes in both interest and non-interest based sources as measured by Herfindahl Hirschmann Index (HHI). The study considered Capital Adequacy, Asset Quality, Management Efficiency, Earning Ability and Liquidity to test their effect on income diversification. The study targeted the commercial banks in Kenya but specifically focused on the listed commercial banks at the NSE. Census sampling method was employed since the listed commercial banks are few however commercial banks that did not meet the inclusion criteria were not considered in the analysis. The study process utilized the secondary published data from the CMA, CBK, NSE and Individual banks websites among other Economic reports. The data was collected using a data collection form and then transferred to Microsoft Excel for clean up before exporting it to STATA for the analysis. Panel Data analysis techniques was employed and GLS was used to fit the model since the technique is versatile in dealing with Auto correlation and Heteroscedasticty challenges. The output indicated that Capital adequacy has a strong positive correlation to income diversification while Asset Quality and Management Efficiency have a negative significance degree of association to income diversification. Earning Ability has a negative weak significance to the income diversification. Lastly, liquidity effect on income diversification was inconclusive. The output results implied that bank management, Central Bank and Treasury should develop policies and environment that allows banks to invest the excess capital for income diversification. Banks should develop policies and invest in models that favor Asset quality improvement and credit administration policies to manage asset quality. Additionally management of costs is vital in order to assure income diversification benefits hence cost management’s measures and monitoring tools should be implemented. Lastly liquidity effects on income diversification was insignificant and inconclusive therefore further studies on this is recommended.Item Factors Affecting Profitability Of Commercial Banks In Kenya: A Comparative Analysis Between Listed And Unlisted Banks(KCA University, 2016) Obasie, Gabriel A.Banking sector acts as the life blood of modern trade and commerce to provide them with a major source of finance. Commercial Banks in Kenya have tended to pursue very rural or otherwise very unreachable clients, even at great cost. They provide financial services, including credit, tailored to the unique needs and limitations of the poor. The general objective of this study was to provide a comparative analysis of the factors affecting profitability of listed and unlisted commercial banks in Kenya using CAMEL model as modified by capital structure. This research is useful for both existing commercial banks as well as those that are starting up. It will enable existing commercial banks in Kenya to identify areas of improvement in their operations that can result in increased profitability through increased revenue or through reduction in operational costs. The study is a comparative study based on secondary data. The population of interest of this study was all commercial Banks operating in Kenya both listed and unlisted. The data was collected from the Central Bank of Kenya Banking Surveys from 2005 to 2015. Data was analyzed using fixed effect panel data regression model. The study found that the variables considered in this study (capital adequacy, asset quality, management quality, management efficiency, earnings ability, liquidity and ownership structure) influences banks profitability. The study recommends that banks should maximize lending to customers and also scrutinize their financial ability to repay before advancing loans to them to avoid default loans in order for them to maximize their profits.