Effect of Interest Rate Spread on the Performance of Mortgage Financing in Commercial Banks in Kenya
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Date
2016Author
Makena, Jacqueline N
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The objective of the study was to determine the effect of interest rate spread on the
Performance of mortgage financing in commercial banks in Kenya. The study was a
descriptive study which utilized secondary data on mortgage performance from the
41 Commercial banks in Kenya, with the period of study being between the years
2011 to 2014. The data was analyzed by using descriptive statistics as well as
inferential statistics. Descriptive statistics was useful for coming up with an
understanding of the data and thus helped in organizing and summarizing of the data
while inferential statistics was to help in making of valid conclusions from the data.
Correlation and regression analysis were used in order to find the degree and nature of
the relationship and thus help in fulfilling the purpose of the study. The findings of the
study indicate that interest rate spread is significant in influencing mortgage
performance of banks as indicated by a coefficient of determination of 0.999. There is
a positive significant relationship between the interest rates spread and the
performance of mortgages.
Publisher
University of Nairobi