The Analysis of Profitability of Kenya`s Top Six Commercial Banks: Internal Factor Analysis

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dc.contributor.authorOnuonga, S.M.
dc.date.accessioned2015-03-30T13:07:01Z
dc.date.available2015-03-30T13:07:01Z
dc.date.issued2014
dc.description.abstractThe financial sector plays an important role in the development of the country. For sustainable economic growth, a country must have a strong banking sector. The Kenyan banking sector has experienced several challenges over time. The government has implemented several reforms to enhance growth and competition in this sector. To achieve financial stability and growth, it is important to identify the determinants of performance of the financial sector. This paper aimed at investigating the impact of the internal determinants of profitability of Kenya`s top six commercial banks over the period 2008-2013, This paper used generalized least squares method to estimate the impact of bank assets, capital, loans, deposits and assets quality on banks profitability. This paper used return on assets (ROA) as a measure of profitability. The findings revealed that bank size, capital strength, ownership, operations expenses, diversification do significantly influence profitability of the top six commercial banks. The result suggests that the Kenyan Government should set policies that encourage commercial banks to raise their assets and capital base as this will enhance the performance of the sector. Another implication of the study is that commercial banks need to invest in technologies and management skills which minimize costs of operations as this will impact positively on their growth and survivalen_US
dc.identifier.citationAmerican International Journal of Social Science Vol. 3, No. 5; October 2014en_US
dc.identifier.issn2325-4165
dc.identifier.issn2325-4149
dc.identifier.urihttp://www.aijssnet.com/journals/Vol_3_No_5_October_2014/10.pdf
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/12431
dc.language.isoenen_US
dc.subjectBank profitabilityen_US
dc.subjectinternal factorsen_US
dc.subjectreturn on assetsen_US
dc.subjectGeneralized Least Squares methoden_US
dc.subjectKenyaen_US
dc.titleThe Analysis of Profitability of Kenya`s Top Six Commercial Banks: Internal Factor Analysisen_US
dc.typeArticleen_US
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