Theses and Dissertations
Permanent URI for this communityhttp://192.168.8.146:4000/handle/123456789/15
Browse
2 results
Search Results
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 Financial Regulations On Financial Performance Of Commercial Banks In Kenya(Kca University, 2018) Muniu, Jeremiah N.The study aimed at determining the effect of financial regulations on financial performance of commercial banks in the Kenyan banking sector. The Central bank of Kenya (CBK) is entrusted with the responsibility of ensuring that the Kenyan banking environment is conducive to operate through establishment of rules and regulations. These regulations have been established around the capital, asset, management, efficiency and liquidity system of rating the commercial banks due to its approach to quantify the soft notion of banks safety. The main objective was therefore to determine the effect of financial regulations on financial performance of commercial banks in Kenya. More specifically, the study sought to determine the effect of each of the capital, assets, management and liquidity regulations on the financial performance of commercial banks in Kenya both within the entity and between entities. The theoretical framework is construed around the public interest theory, private interest theory of regulations as well as the information asymmetric theory. Descriptive design was adopted in analyzing the 37 commercial banks targeted. The relevant panel data was gathered from the (CBK) database for six years starting from the year 2010 - 2015 and analyzed using the linear panel regression models. The findings were presented using graphs and tables, the results indicated that capital adequacy regulations and liquidity regulations have a positive effect on the variation of financial performance while asset quality regulations and management efficiency regulations affect the financial performance of bank in Kenya negatively. Capital adequacy, asset quality and liquidity regulations were statistically insignificant while management efficiency was statistically significant at 95% confidence level. Recommendations call for continuous review of the credit regulations, employment of sound techniques in the management of bank’s operations as well as invitation of scholars to undertake thorough research on the impact of the specific regulations.