Browsing by Author "Musili, Johnstone Muimi"

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    Prudential Requirements and Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange, Kenya
    (Kenyatta University, 2025-09) Musili, Johnstone Muimi
    Commercial banks have a vital and varied function they perform. In Kenya, commercial banks are essential to industrialization and job creation as well as the financial development of the majority of market participants. Nonetheless, commercial banks' financial performance has been deteriorating over time. For example, profitability fell to Ksh.112.1 billion in 2020 from Ksh.159.1 billion in the prior financial period—a 29.5% negative shift. The conceptual linkage between commercial banks' financial performance and regulatory standards has portrayed dissimilar debate amongst scholars over the years. This study focused on the precise goals listed; exploring the influence of liquidity, capital adequacy, and asset management on the Nairobi Securities Exchange's (NSE) listing commercial banks' operating results. The investigation was anchored on Keynes liquidity preference, the capital buffer and the liabilities management theories. The investigation utilized causal-effect research approach. The target audience comprise of eleven (11) listed commercial banks in NSE, Kenya whereby census approach was used therein. The study analysis was based on descriptive as well as panel regression analysis.Prior to drawing investigational deductions and conclusions, diagnostic testing was conducted. The outcome was presented using tables and figures. Ethical issues were given pre-eminence where a permit from Kenyatta University graduate school was sought and NACOSTI in that order. Findings unveiled that liquidity exhibited a statistically significant direct influence on financial performance; capital adequacy indeed exerts a significant and positive influence on financial performance; and asset management depicted negative influence on financial performance, which was statistically significant. The survey advices that the banks should focus on other risk management strategies, such as credit risk, operational risk, and market risk to enhance their performance financially. Implementing robust risk management frameworks and diversifying risk exposure would help ensure overall financial stability and resilience
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    Prudential Requirements and Financial Performance of Commercial Banks Listed at the Nairobi Securities Exchange, Kenya
    (Strategic Journals, 2025-07) Musili, Johnstone Muimi; Mbuva, Geoffrey
    Commercial banks have a vital and varied function they perform. In Kenya, commercial banks are essential to industrialization and job creation as well as the financial development of the majority of market participants. Nonetheless, commercial banks' financial performance has been deteriorating over time. For example, profitability fell to Ksh.112.1 billion in 2020 from Ksh.159.1 billion in the prior financial period—a 29.5% negative shift. The conceptual linkage between commercial banks' financial performance and regulatory standards has portrayed dissimilar debate amongst scholars over the years. This study focused on the precise goals listed; exploring the influence of liquidity, capital adequacy, and asset management on the Nairobi Securities Exchange's (NSE) listing commercial banks' operating results. The investigation was anchored on Keynes liquidity preference, the capital buffer and the liabilities management theory. The investigation utilized causal-effect research approach. The target audience comprise of eleven (11) listed commercial banks in NSE, Kenya whereby census approach was used therein. The study analysis was based on descriptive as well as panel regression analysis.Prior to drawing investigational deductions and conclusions, diagnostic testing was conducted. The outcome was presented using tables and figures. Ethical issues were given preeminence where a permit from Kenyatta University graduate school was sought and NACOSTI in that order. Findings unveiled that liquidity did not demonstrate a statistically significant negative effect on financial performance. However, capital adequacy was uncovered to have a significant and positive influence on financial performance. Additionally, asset management exhibited a significant negative effect on financial performance. The study recommends that banks prioritize alternative risk management strategies, including credit risk, operational risk, and market risk, to improve financial performance. Adopting comprehensive risk management frameworks and diversifying risk exposures would contribute to enhanced financial stability and resilience