RP-Department of Management Science

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Browsing RP-Department of Management Science by Author "Jagongo, Ambrose"

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    Bank Characteristics and Lending Rates among Commercial Banks in Kenya
    (2017) Maubi, Andrew Mokaya; James, Rosemary; Jagongo, Ambrose
    This study sought to investigate the effect of bank characteristics on lending rates among commercial banks in Kenya. Specifically the study sought to; establish the effect of bank size, credit risk, and liquidity risk, operating costs, on lending rates among commercial banks in Kenya. The research philosophy for this research was positivism. Explanatory non-experimental research design was employed. The target population was thirty nine (39) commercial banks from whom secondary data was collected by way of census since these are the banks from which complete information could be obtained for meaningful analysis for the study period 2006-2015. Descriptive Statistics including Mean, Standard deviation, inferential statistics (Panel regression analysis and Correlation analysis) were carried out. Data analysis was run on the Stata 13 package and findings presented in figures, tables, graphs and charts while deriving conclusions and recommendations from the findings of the study. The finding revealed that bank size, operating costs, had positive and significant effects on lending rates. However the effect of GDP growth rate and bank size was found to be negative. The finding further showed that the effects of credit risk and liquidity risk on lending rates was positive but insignificant. Based on the findings, the study concluded that bank characteristics play a significant role in determining the lending rates of commercial banks. The study recommends that individuals wishing to take mortgages home equity loans, car loans, and personal loans from commercial banks should consider the size of the banks, its market share and other internal factors to identify the most competitive banks in terms of lending rates. Key Words: Bank, Credit, Liquidity, Risk, Operating Costs, Lending
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    Effect of Selected Macroeconomic Variables on Lending Rates among Commercial Banks in Kenya
    (Canadian Center of Science and Education, 2017) Maubi, Andrew Mokaya; Jagongo, Ambrose; James, Rosemary
    This study sought to investigate the effect of macroeconomic variables on lending rates among commercial banks in Kenya. Specifically the study sought to; establish the effect of Gross Domestic Product growth rate and inflation rate on lending rates among commercial banks in Kenya. The study also sought to determine the moderation effect of political risk on the relationship between macroeconomic variables and lending rates among commercial banks in Kenya. Explanatory non-experimental research design was employed. The target population was thirty-nine (39) commercial banks from whom secondary data was collected by way of census since these are the banks from which complete information could be obtained for meaningful analysis for the study period 2006-2015. Descriptive Statistics including Mean, Standard deviation, inferential statistics (Panel regression analysis and Correlation analysis) were carried out. Data analysis was run on the Stata 13 package and findings presented in figures, tables, graphs and charts while deriving conclusions and recommendations from the findings of the study. The finding revealed that GDP growth rate and inflation had positive and significant effects on lending rates. However, the effect of GDP growth rate was found to be negative. Political risk was found to have insignificant moderating effect on the relationship between macroeconomic variables and lending rates among commercial banks in Kenya. Based on the findings, the study concluded that macroeconomic variables play a significant role in determining the lending rates of commercial banks. The study recommends that government should pay attention to macroeconomic factors while controlling the domestic lending rates. Policy initiatives that wish to keep the lending rates at a low level should also take into consideration the need to enhance economic growth and reduce inflation. Keywords: Gross Domestic Product growth rate, inflation rate, lending rates, banks.
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    Moderating Effect of Political Risk on the Relationship between Bank Characteristics and Lending Rates among Commercial Banks in Kenya
    (American Research Institute for Policy Development, 2018) Maubi, Andrew Mokaya; Jagongo, Ambrose; James, Rosemary; Ouma, Duncan O.
    Low lending rates would encourage increased uptake of loan facilities hence fostering investments that in turn would be expected to spur economic growth. Increase in investments is expected to yield good returns hence resulting in multiplier effects. After the 1990s when financial liberalization had taken root, commercial banks in Kenya stood related in terms of not only other aspects of their trading but also with lending rates. The benefits expected of Financial Liberalization and deepening of the financial sector is narrowing of lending rates. Political risk is the risk faced by commercial banks that include political decisions events conditions or pronouncements which significantly affect their commercial banks profitability. In this context, the effect on profitability would have an effect on lending rates in return. The Political risk index is computed based on twelve items entailing social and political constructs within a country. The study sought to establish the moderating effect of political risk on the relationship between bank characteristics and lending rates among commercial banks in Kenya. The research philosophy for this research was positivism. Explanatory non-experimental research design was employed. The target population was thirty nine (39) commercial banks from whom secondary data was collected by way of census since these are the banks from which complete information could be obtained for meaningful analysis for the study period 2006-2015. Descriptive Statistics including Mean, Standard deviation, inferential statistics (Panel regression analysis and Correlation analysis) were carried out. Data analysis was run on the Stata 13 package and findings presented in figures, tables, graphs and charts while deriving conclusions and recommendations from the findings of the study. Political risk was found to have insignificant moderating effect on the relationship between bank characteristics and lending rates among commercial banks in Kenya. Keywords: Political Risk, Bank, Characteristics, Lending Rates