| dc.description.abstract | The purpose of the study was to examine the effect
of credit reference bureaus on
profitability of commercial banks in Kenya. The stu
dy adopted a causal comparative
descriptive research design and used secondary data
for analysis. The target population
consisted of 44 commercial banks in Kenya. The stud
y concludes that credit reference
bureau services assist in reducing the incidence of
non-performing loans and hence in
improving the bank profitability. This is made poss
ible through the reduction of
transaction costs, enhanced information sharing, re
duced loan loss and delinquency, and
enhanced credit evaluation practices due to credit
reference bureau services are used. The
study recommends that banks should continue to util
ize the credit reference bureau
services as it enhances their profitability. The se
rvice lowers the risks involved in
identifying suitable clients that the bank can adva
nce loans to. Further studies should
incorporate measures of GDP as they greatly affect
profitability and also determine client
perception on CRB. | en_US |
