Financial Inclusion, GDP and Credit Risk of Commercial Banks in Kenya

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dc.contributor.authorMusau, Salome
dc.contributor.authorMuathe, Stephen M. A.
dc.contributor.authorMwangi, Lucy
dc.date.accessioned2019-10-03T07:30:43Z
dc.date.available2019-10-03T07:30:43Z
dc.date.issued2018
dc.descriptionResearch Articleen_US
dc.description.abstractThis paper provides an empirical analysis of the synergies and trade offs between financial inclusion and credit risk of commercial banks in Kenya. The paper analyzed the effect of financial inclusion on credit risk and the mo deration effect of GDP on commercial banks in Kenya. Financial inclusion was measured using three dimensions of bank availability, bank accessibility and bank usage, while credit risk was represented by the non performing loans ratio. The study was anchore d on financial intermediation theory supported by finance growth theory and asymmetry information theory. The target population was all the 43 commercial banks in Kenya. The study used secondary data collected from Central Bank of Kenya annual reports; com mercial banks of Kenya published audited financial statements and annual data from Central Bureau of statistics of Kenya fo r the period between 2007 2015. Data was analyzed using descriptive statistics and panel multiple regression analysis. The results obtained found that bank availability, bank accessibility and bank usage had significant effect on credit risk of commercial banks in Kenya. GDP growth rate was found to partially moderate the relationship between financial inclusion and credit risk. From the findings the study concluded that financial inclusion has a significant effect on credit risk of commercial banks in Kenya. The study also recommended that commercial banks in Kenya to negotiate with Central Bank and the Ministry of Finance to put policies which support favorable macroeconomic variables especially GDP which influences the level of financial inclusion and bank credit risk.en_US
dc.identifier.citationInternational Journal of Economics and Finance; Vol. 10, No. 3; 2018en_US
dc.identifier.issn1916-971X
dc.identifier.issn1916-9728
dc.identifier.urihttp://ir-library.ku.ac.ke/handle/123456789/19712
dc.language.isoenen_US
dc.publisherCanadian Center of Science and Educationen_US
dc.subjectFinancial inclusionen_US
dc.subjectGDP growth rateen_US
dc.subjectCredit risken_US
dc.subjectKenyaen_US
dc.titleFinancial Inclusion, GDP and Credit Risk of Commercial Banks in Kenyaen_US
dc.typeArticleen_US
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