The effect of financial deepening on productivity of commercial banks in Kenya
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Date
2015Author
Ochieng', Martin O
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The link between financial deepening and economic growth has long received
significant attention in economics, however, the waves of financial deepening cannot
raise the tide of the economy without affecting bank productivity; it is against this
background that this study was formulated to examine the effects of financial
deepening on productivity of commercial banks in Kenya. The study targeted all the
commercial banks in Kenya. Secondary data was collected from the Kenya National
Bureau of Statistics, Central Bank of Kenya and websites of licensed Commercial
banks in Kenya. The study used both explanatory research design and inferential
statistics to investigate the effect of financial deepening on productivity of
commercial banks. The findings of the study revealed that financial deepening affects
bank productivity positively. The results of this paper therefore, present a strong
argument towards increasing financial deepening as an important stimulator of greater
banking productivity. While Kenya still exhibits relatively low levels of financial
deepening, commercial banks productivity displays an increasing trend in recent
years. An increase in money supply in the economy may be an important determinant
of further banking productivity increases in the future. Therefore, policy oriented
measures in the country should take in consideration the positive causality between
financial deepening and banking productivity and try to increase the level money
supply as a stimulant of economic growth.
Publisher
University of Nairobi
Description
Thesis