Theses and Dissertations
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Item Effect of firm characteristics on credit creation of listed Commercial banks in Kenya(KCA University, 2025) Kuol, David A.This study investigates the influence of firm characteristics on credit creation among listed commercial banks in Kenya over the period from 2019 to 2023. The primary objective is to examine how capital adequacy, asset quality, management efficiency, and bank size affect the ability of these banks to extend credit, measured as the ratio of total loans to total deposits. A descriptive correlation research design is employed, utilizing panel data analysis with fixed and random effects models to assess the relationships between the variables. The target population comprises all 12 listed commercial banks in Kenya, with secondary data sourced from the Central Bank of Kenya and published financial reports. The findings indicate a significant positive relationship between capital adequacy and credit creation, suggesting that higher capital buffers enhance lending capacity. Asset quality also exhibits a positive correlation with credit creation, indicating that lower non-performing loan ratios support greater lending potential. Management efficiency shows a marginally negative effect, implying that efficient operations may reduce capital buffers to prioritize lending. Bank Size demonstrates no significant impact on credit creation. The study underscores the importance of robust capital standards, effective credit risk management, and operational efficiency in enhancing credit creation. These findings provide insights for banks and regulators to strengthen financial stability and support sustainable credit growth in Kenya.Item Effect of Internal Organizational Factors on Performance of Commercial Banks in Kenya(KCA University, 2016) Mbaya, Mercy K.Globally and in Kenya, commercial banks play an important role in economic stimulus of the economy as well distribution of growth. Banks channels funds from depositors to investors hence linking economic players of the nation. For this reason, studies seeking to improve commercial banks performance have increased tremendously. However, there is a dearth of studies on the effect of liquidity, capital, costs and operational efficiency on commercial banks’ financial performance. This study therefore sought to fill this gap by determining how liquidity management, capital strength, operational efficiency and cost affect commercial banks performance in Kenya. The main objective of this study was to determine the effects of the selected internal factors on performance of commercial banks in Kenya. Specifically the study sought to determine effect of liquidity management, capital strength, operational efficiency and cost on performance of commercial banks in Kenya. The study was based on the neo-classical and efficient structure theories. Descriptive research design was applied in the study. Target population was 42 commercial banks in Kenya. Secondary data was collected for the 42 banks for five years (2010 – 2014). Fixed effects panel regression model and correlation analysis were used in analysis. The findings are expected to inform policy and practice in bank management. The study findings indicate that efficiency and capital adequacy has a significant positive effect on bank profitability while liquidity has a negative effect on profitability. Operating costs have no significant effect on profitability. The study recommends a well-defined policy framework for the management of capital adequacy requirements as banks would be more profitable if they increase their core capital. Further, the study recommends to managers to stabilize their liquidity just above the required legal limit. Lastly, the study recommends banks to optimize their use of resources to ensure that they efficiently utilize their resources and are less wasteful.Item Effect Of Regulation On The Financial Performance Of Microfinance Banks In Kenya: A Survey Of Microfinance Banks In Nairobi(Kca University, 2016) Wanjiru, Catherine.This research paper explored the effects of regulation on financial performance of microfinance banks in Kenya. The study was guided by these research questions: what is the effect of capital adequacy regulation on the financial performance of Microfinance Banks in Kenya? To what extent has liquidity management regulation affected the financial performance of Microfinance Banks in Kenya? What is the effect of Asset quality on the financial performance of Microfinance Banks in Kenya? The research design e used in this study was descriptive which enabled the researcher to unearth the effect of financial regulation on financial performance of microfinance banks in Kenya. The target population in this study was 13 microfinance banks in Kenya. The researcher, with his team collect secondary data collected from the financial statements of the microfinance banks in Kenya, for the period 2011-2015. The data collected was analyzed using Statistical Package for Social Sciences (SPSS) program and presented in tables to enable the users of the research findings to understand the findings in an efficient and simple way. The study found out that capital adequacy had a positive effect on ROA, liquidity had a negative effect on ROA, asset quality had a negative effect on ROA and capital adequacy had a negative effect on ROE, liquidity had a negative effect on ROE and asset quality had a positive effect on ROE. The study concludes that there was a statistically significant relationship between the MFIs’ capital adequacy and their financial performance, MFIs in Kenya is highly dependent on the level of the institutions’ liquidity and here is a significant influence of asset quality of the MFIs and their financial performance. The study recommends that more investments should therefore be done through establishing more MFIs networks across the country which is associated positively with their financial performance, strategies to facilitate increased liquidity of MFIs should be adopted by the institutions for their efficiency in financial operations and MFIs should emphasize on asset quality as a stimulator of their financial performance and competitiveness.