dc.contributor.author | Maaka, Zaphaniah A | |
dc.date.accessioned | 2013-11-26T05:55:49Z | |
dc.date.available | 2013-11-26T05:55:49Z | |
dc.date.issued | 2013-10 | |
dc.identifier.citation | Degree Of Master Of Business Administration | en |
dc.identifier.uri | http://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/60295 | |
dc.description | A research project submitted in partial fulfillment of
The requirements for the award of the degree of
Master of business administration (MBA), school of
Business, university of Nairobi | en |
dc.description.abstract | Liquidity risk is considered as one of the serious concern and challenge for the modern era
banks. A bank having good asset quality, strong earnings and sufficient capital may fail if it is
not maintaining adequate liquidity. Towards this end, the research sought to establish the
relationship between liquidity risk and financial performance of commercial banks in Kenya.
The study adopted correlation research design where data was retrieved from the balance sheets,
income statements and notes of 33 Kenyan banks during 2008-2012. Multiple regressions was
applied to assess the impact of liquidity risk on banks’ profitability. The findings of the study
were that profitability of the commercial bank in Kenya is negatively affected due to increase in
the liquidity gap and leverage. With a significant liquidity gap, the banks may have to borrow
from the repo market even at a higher rate thereby pushing up the cost of banks. The level of
customer deposit was also found to positively affect the bank’s profitability and it will therefore
be encouraged for banks to open more branches in the country. The period studied in this paper
is 2008-2012, due to availability of the data. However, the sample period does not impair the
findings since the sample includes 14 banks, which constitute the main part of the Kenyan
banking system. Only profitability was considered in the study and there is need to consider
other variables such as the economic condition prevailing in a given period. | en |
dc.language.iso | en | en |
dc.publisher | University of Nairobi | en |
dc.title | The Relationship Between Liquidity Risk and Financial Performance of Commercial Banks in Kenya | en |
dc.type | Thesis | en |
local.publisher | School of Business | en |