SUBMIT YOUR RESEARCH
Scholars Bulletin (SB)
Volume-4 | Issue-02 | 153-163
Research Article (Business)
Macroeconomic Factors and Bank Performance in Kenya
MUBIAH, Patrick Matindi, NGUNYI, Anthony, ITHINJI G. K
Published : Feb. 20, 2018
DOI : 10.36348/sb.2018.v04i02.004
Abstract
Abstract: Banks are important in the economy because they provide the security to the savings of customers, control the supply of money and credit and encourage public confidence in the working of the financial system. The current study sought to establish the influence of macroeconomic factors on bank performance. This study adopted the descriptive survey research design. The 44 commercial banks registered by central bank participated in the study. The study utilized secondary data which was sourced from CBK annual bank supervision reports over a 10-year period between 2006 and 2015. Descriptive statistics were used to organize the data while regression analysis was also be conducted to establish the relationships between variables in the study. The study found that macroeconomic factors have a strong positive correlation with bank performance. Exchange rates were significant. The study concludes that macroeconomic factors as a whole are important to bank performance. The study recommended that banks should enhance their risk management practices to shield them from grave exchanger rate exposure. This can be achieved through keen monitoring of fluctuations. Keywords: Macroeconomic factors, bank performance, exchange rates, interest rates
Scholars Middle East Publishers
Browse Journals
Payments
Publication Ethics
SUBMIT ARTICLE
Browse Journals
Payments
Publication Ethics
SUBMIT ARTICLE
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
© Copyright Scholars Middle East Publisher. All Rights Reserved.