| dc.description.abstract | The study sought to evaluate the effect of CBK prudential guidelines and regulations on
the financial performance of commercial banks in Kenya. After secondary data gathered
from Bank supervision reports of CBK and published financial statements of commercial
banks. The collected data was edited and cleaned for completeness in preparation for
coding. Once coded, the data was entered into the Statistical Package for Social Sciences
(SPSS) version 17 for analysis. Descriptive statistics such as mean and standard deviation
were used to analyse the data. Regression analysis was used to test the relationship
between the variables under study in relation to the objectives of the study. The study
recommended that there is a strong and positive relationship (r=0.628) between financial
performance of banks and the CBK prudential guidelines and regulations. CBK
prudential guidelines accounts for 29.9% of the financial performance of commercial
banks in Kenya. The study also concludes that growth in Gross Domestic Product of the
country, high levels of Capital Adequacy, high Management Oversight Efficiency level
and high Liquidity levels of the bank as well as was low inflation rates found have a
positive effect on the banks financial performance. The study also concludes that the
Kenyan commercial banks have a very low asset quality which makes it to have a
negative effect on the financial performance of the banks. The study further concluded
that this study supports existing literature. The study also found out that the management
efficiency levels of the commercial banks are below average. This study recommended
that the management of banks should start deploying their resources more efficiently,
start maximizing their income more and also reduce further their operating costs so as to
raise their management efficiency levels. Management efficiency determines the level of
operating expenses and in turn affects profitability of the bank. | en_US |
