Effect of credit information sharing on non-performing loans in commercial banks in Kenya
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Date
2016Author
Kithinji, Washington M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Commercial banks in Kenya are faced with high rates of loan default which has
continuously caused significant losses. The banking sector in Kenya is continually
being hampered by the non-performing loans and the lack of adequate funds to cover
for them. Commercial banks are faced with information asymmetry where different
banks have varied credit history pertaining to their borrowers. This study made use
secondary data collected from the various central bank of Kenya supervisory and
annual reports for the period 2008 to 2015. Analysis was done using SPSS and
applied a bi-variate regression analysis. Results obtained indicate that non-performing
loans reduce with increase in the access and use of credit reports. These results
reaffirm the propositions by various literatures that use of credit information sharing
has a positive impact on reducing non-performing loans. This finding helps the central
bank of Kenya through its supervisory arm to come up more strategies of increasing
sharing of both positive and negative credit information across the players in the
banking sector.
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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