Banks Regulation and Performance in the Context of Commercial Banks in Kenya
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Date
2020
Authors
Kori, Blandina Walowe
Muathe, Stephen M. A.
Maina, Samuel Mwangi
Journal Title
Journal ISSN
Volume Title
Publisher
HRMARS
Abstract
The purpose of this study was to examine the effect of regulatory framework in commercial banks,
in Kenyan context. The study evaluated commercial banks performance using both financial and nonfinancial performance measurers. The financial measurers for this study comprised return on equity
(ROE), while non-financial measures were customer satisfaction, learning and growth, and internal
processes. The study was anchored on resource-based view, dynamic capabilities and stakeholder
theories. The targeted population for the study was 40 commercial banks and the sample size was
181 respondents selected proportionately through stratified sampling procedure. Data collection
instruments comprised closed and open -ended questionnaires and online document review. This
study used primary and secondary data, primary data was obtained from Kenya commercial banks
head offices, while secondary data, for the year 2016 – 2018, was acquired from the annual
publications by the central bank of Kenya. Data analysis was done using descriptive statistics and
simple regression analysis. Findings of study indicate that regulatory framework has a statistically
significance on the performance of commercial banks in Kenya but not to a large extent. Moreover,
both financial and non-financial measures of performance are relevant in the banking sector and
growth of Kenyan economy. The study recommends that regulators should not enforce restrictions
on the expense of adverse effect on the investors.
Description
Article
Keywords
Bank Regulations, Performance, Commercial Banks in Kenya
Citation
Kori, B. W., Muathe, S. M. A., & Maina, S. M. (2020). Banks Regulation and Performance in the Context of Commercial Banks in Kenya. International Journal of Academic Research in Business and Social Sciences. 10(10), 65-79.