Effects of Agency Banking on the Financial Performance of Commercial Banks in Kenya
Abstract
The banking industry is very volatile with innovation and competition taking centre
stage. This forces banks to change their strategies to suit the industry and improve
their financial performance. In the recent past the banking industry in Kenya has
embraced diversification of products and services with the current move being agency
banking services that supports branchless banking in commercial banks. The study
sought to determine the effects of agency banking on the financial performance of
commercial banks.
The study variables tested included cash withdrawal; cash deposits and cash transfer
through agents with total capital as a control variable. A descriptive research design
was adapted that utilised only secondary data from the commercial banks audited
financial statements and CBK reports ranging from 2012 to 2015. Data was analysed
using SPSS and the results presented in tables. The findings from the analysis
indicates that agency banking on its own has minimal effect on the financial
performance of commercial banks in fact the correlation depicts an inverse
relationship, however when aggregated with other variables that affect commercial
banks performance a strong positive correlation is evident.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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