Central Bank of Kenya Regulations and Financial Performance of Commercial Banks in Kenya

Simple item page
dc.contributor.advisorFarida Abdulen_US
dc.contributor.advisorLinda Kimeneuen_US
dc.contributor.authori Mathenge, Celestine Wangu
dc.date.accessioned2021-10-01T09:18:45Z
dc.date.available2021-10-01T09:18:45Z
dc.date.issued2021
dc.descriptionA Research Thesis Submitted to the School of Business in Partial Fulfillment of the Requirements for the Award of Degree of Master of Science (Finance) of Kenyatta University, December, 2020en_US
dc.description.abstractThe Vision 2030 for Kenya advocates for triple pillars in the financial sector which include stability, access to all financial services and efficiency. Therefore, for nation to realize the vision 2030, it must be realized that the banking sector plays a very vital function in stimulating economic development and hence it should be well regulated. Hence, the aim of this study was to assess the effect that Central Bank of Kenya regulations have on financial performance of commercial banks in Kenya. The paper specifically focused on the effects of credit risk management regulation, capital requirement, liquidity management regulation, corporate governance and the moderating effect of bank size on financial performance of commercial banks in Kenya. The research problem was that, despite CBK regulations review in 2013 for performance improvement, some banks such as Chase bank, Imperial and CFC stanbic encountered financial problem in the year 2015 and 2016. In addition, National bank registered a loss of 1.2 Billion in the year 2015 while on the other hand, banks such as KCB and Cooperative had shown a positive performance since the review of regulation in the year 2013.Descriptive research design was used in the study and the target population comprised of forty two commercial banks as at December 2017. The study relied on secondary data which was collected from the recently published annual financial statement as well as from the supervision records for banks from CBK for the year 2012 to 2017.In data analysis, statistical package for social sciences (SPSS) was employed to compute statistics and analyze quantitative data. The findings of the study indicated that credit risk management had a positive and insignificant effect on performance of commercial banks while capital requirement had significant negative effect. Liquidity management had a significant positive relationship while, corporate governance had an insignificant positive effect. The moderating variable bank size had a significant moderating effect between CBK regulations and CB financial performance relationship in Kenya. The multiple regression analysis results indicated that variations in CBK regulations explain about 31.6% of the variations on performance of commercial banks in Kenya. Based on the research findings, commercial banks should put in place in place effective credit risk management techniques to reduce default risk and to enhance their assets quality since assets quality enhance commercial banks performance.en_US
dc.description.sponsorshipKenyatta Universityen_US
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/22717
dc.language.isoenen_US
dc.publisherKenyatta Universityen_US
dc.subjectCentral Bank of Kenyaen_US
dc.subjectRegulationsen_US
dc.subjectFinancial Performanceen_US
dc.subjectCommercial Banksen_US
dc.subjectKenyaen_US
dc.titleCentral Bank of Kenya Regulations and Financial Performance of Commercial Banks in Kenyaen_US
dc.typeThesisen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Central Bank of Kenya.....pdf
Size:
1015.9 KB
Format:
Adobe Portable Document Format
Description:
Full text thesis
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
MST-Department of Accounting and Finance