dc.contributor.author | Kamoyo, Elias M | |
dc.date.accessioned | 2013-05-10T13:34:18Z | |
dc.date.available | 2013-05-10T13:34:18Z | |
dc.date.issued | 2006 | |
dc.identifier.citation | A management research project submitted In partial fulfillment of the requirements For the award of masters of business Administration (mba) degree school of Business, university of Nairobi. | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/21485 | |
dc.description.abstract | The paper empirically analyzed the determinants of the liquidity of the commercial banks
in Kenya using a multiple linear regression model. The motivation was to establish
whether the determinants of liquidity are empirically robust. The focus was exclusively
on a cross section of 30 commercial banks in Kenya. This was because earlier crosscountry
studies recommended country-specific empirical investigation as an area
warranting further research. Employing the linear regression model uncovered an
economically meaningful relationship between bank's liquidity and its determinants.
The findings from a cross sectional analyses indicate that significant factors that
determine the liquidity of the commercial banks in Kenya are liquid liabilities, growth
and maturity. Liquid liabilities and maturity have a positive impact on liquidity whereas
growth has a negative impact. The other factors such as liquid assets and cash flows have
a positive but insignificant effect on the liquidity of commercial banks. Similarly,
leverage, size, profitability and loan commitments have an insignificant negative effect
on banks' liquidity.
The estimated model results indicate that all the variables included in the model
significantly determines 80 percent of the variation in liquidity. The findings further -..
indicate that the estimation results are free from any problems of normality and
heterogeneity as shown by the normality and hetero~eneity test results. The model also
fits the data correctly as indicated by the post-estimation results. The implication of these
findings is that the Central Bank of Kenya needs to devise legal requirements that give
benchmarks of the above ratios to ensure a sustainable liquidity of the commercial banks.
This will help create a stable banking and financial sector that provides a conducive
environment for sustainable economic growth and development. | en |
dc.language.iso | en | en |
dc.title | Determinants of liquidity of commercial Banks in Kenya: An empirical study | en |
dc.type | Thesis | en |
local.publisher | Business Administration and planning | en |