Prudential Regulations and Financial Performance of Commercial Banks in Kenya
| dc.contributor.author | Tenai, Salome Jemutai | |
| dc.date.accessioned | 2025-07-24T16:54:04Z | |
| dc.date.available | 2025-07-24T16:54:04Z | |
| dc.date.issued | 2025-04 | |
| dc.description | A Research Project Submitted to the School of Business in Partial Fulfillment of the Requirement for the Award of Master Degree of Business Administration (Finance Option) of Kenyatta University, April, 2025 Supervisor: 1.Faith Nkuru | |
| dc.description.abstract | Commercial banks hold great significance as they assume a crucial function in the allocation and dissemination of a nation's economic resources. The pivotal roles undertaken by commercial banks, it is imperative that they remain sound in the aspect of liquidity, asset quality and capitals. A sound and healthy banking sector can only be ensured through prudential regulations. The Kenyan banking industry in recent years has been marred by dwindling financial performance. Some surveys have been performed on prudential regulations and performance of commercial banks financially; however, these studies have various research gaps which in turn forms the basis for this survey. The general objective was to determine prudential regulations effect on Kenyan commercial banks’ performance financially. Specifically considered was to evaluate the capital, credit and liquidity regulations effect on Kenyan commercial banks performance financially. The survey further assessed the interest rates moderating effect on the linkages concerning prudential regulations and commercial banks Kenya’s performance financially. The theoretical scope comprises of Agency, Capital Buffer and Liquidity Preference theories. The survey was guided by causal design of the research while secondary information was used for the time scope 2015 to 2021. The population of the survey comprised of the Kenyan forty-one commercial banks and a census of these banks was undertaken. Descriptive (mean and deviation from standard) and panel regression analysis techniques was applied in transforming the data into interpretable and usable forms. The results indicated that capital regulation had positive and insignificant effect on financial performance; credit regulation had a negative and significant effect on financial performance; liquidity regulation was insignificant and negatively affected financial performance of Kenyan commercial banks. Additionally, interest rate moderated the relationship between prudential regulations and financial performance with an inverse and insignificant sign in Kenya’s commercial banks. The survey recommends that the management of commercial banks should device a means or set out other policies that will enhance the effectiveness of capital regulations in enhancing the banks financial performance. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/30825 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Prudential Regulations and Financial Performance of Commercial Banks in Kenya | |
| dc.type | Thesis |