The Effect of Islamic Banking Products on Financial Performance of Islamic Banks in Kenya
Abstract
Establishing the effect of Islamic banking products on financial performance of Islamic banks in Kenya was the objective of the study. This study used a case study and adopted a descriptive research design. The study collected data from Gulf African Bank and First Community Bank. This study utilized secondary data. Secondary data as analyzed using inferential statistics, descriptive statistics, regression analysis and correlation. Secondary data was gathered from financial statements of the Islamic bank. Inferential statistics such as multiple regressions and Pearson correlation was used. In establishing the link between Islamic banking products financial performance in Islamic banks in Kenya and the significance /fitness of the model and descriptive and inferential statistics were employed specifically using correlation, regression and ANOVA. The study found a positive correlation between financial performance of IFIs and Islamic financial instruments which include Musharakah financing, Mudaraba financing, Murabaha financing and Ijara financing, Thus the study concludes that all the Islamic financial instruments had a positive impact on the performance of commercial Banks in Kenya. The study concludes that Islamic banking products lead to improved financial performance of Islamic banks Kenya. Financial performance is the most significant challenge to Islamic banks since other commercial banks have since been licensed to offer Islamic banking products
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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