Credit Survey Information and Commercial Banks’ Lending to Non-Financial Corporate Sectors in Kenya

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dc.contributor.authorS.M., Maina
dc.contributor.authorA.O., Jagongo
dc.contributor.authorG.K., Atheru
dc.date.accessioned2023-06-23T11:51:43Z
dc.date.available2023-06-23T11:51:43Z
dc.date.issued2020
dc.descriptionArticleen_US
dc.description.abstractThis study sought to assess the link between credit survey information and commercial banks’ lending to nonfinancial corporate sectors in Kenya.The study used secondary data extracted fromreports prepared by the Central Bank of Kenya and Kenya National Bureau of Statistics such as Quarterly Economic Reviews, Credit Survey Reports, Bank Stability Reports and Bank Supervision Reports for the period December 2012 – September 2018. The data obtained was analyzed using the panel regression model for random effects as supported by Hausman test results. The study found out that there exist a statistically significant positive relationship between credit demand and commercial banks’ lending to the non-financial corporate sectors. In respect to credit standards, the study found no evidence of a statistically significant relationship between credit standards and commercial banks’ lending to the non-financial corporate sectors in Kenya. The non-performing loans for the second immediate past quarter were found to have a statistically significant negative relationship with commercial banks’ lending. Based on the study’s empirical results,the study recommends that the government of Kenya should enact measures aimed at boosting economic growth and revival of the economy so as to enhance business cash flows and demand of products from the non-financial corporate sectors in Kenya. Additionally, the government should focus on measures such as improving the employment rate, reducing the tax burden, increasing public investment and expanding the market for locally produced products.en_US
dc.identifier.citationMaina, S. M., Jagongo, A., & Atheru, G. Credit Survey Information and Commercial Banks’ Lending to Non-Financial Corporate Sectors in Kenya.en_US
dc.identifier.otherDOI: 10.9790/5933-1103053242
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/25949
dc.language.isoenen_US
dc.publisherIOSRen_US
dc.subjectcommercial banks’ lendingen_US
dc.subjectcredit demanden_US
dc.subjectcredit standardsen_US
dc.subjectnon-performing loansen_US
dc.subjectnon-financial corporate sectorsen_US
dc.subjectrandom-effects modelen_US
dc.titleCredit Survey Information and Commercial Banks’ Lending to Non-Financial Corporate Sectors in Kenyaen_US
dc.typeArticleen_US
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