dc.contributor.author | Tora, Joel | |
dc.date.accessioned | 2019-01-30T06:07:08Z | |
dc.date.available | 2019-01-30T06:07:08Z | |
dc.date.issued | 2018 | |
dc.identifier.uri | http://hdl.handle.net/11295/105938 | |
dc.description.abstract | This research was undertaken in order to determine the effect of macro-economic
variables on financial performance of commercial banking sector in Kenya. So far, the
studies available have arrived at different findings. This study aimed at contributing to
determining to what extent macro-economic variables influence financial performance of
commercial banking sector in Kenya. The researcher ran a descriptive as well as a
correlational study on all the commercial banks in Kenya between January 2008 and
December 2017. Data was analyzed using SPSS software version 22 and was presented
using graphs and frequency tables. Secondary data on quarterly bank performance was
obtained from the Central bank quarterly financial reports while data on macro-economic
variables was obtained from both Central Bank of Kenya and Kenya National Bureau of
Statistics and was analyzed through both descriptive and inferential statistics. Return on
assets was used to measure financial performance while quarterly interest rates, quarterly
exchange rates (USD/KSH), quarterly GDP growth rate, and quarterly inflation rates
were used to measure interest rates, exchange rates, economic growth and inflation rates
respectively. The results of the study indicated that there is a strong relationship
(R=0.656) between macro-economic variables and financial performance of commercial
banks. The study also recorded an R-squared value of 0.43. This implies 43% of the total
variance in financial performance of the commercial banking sector in Kenya can be
attributed to macro-economic variables. ANOVA statistics revealed that the regression
model was ideal since it had a significance level of 0.000. The study further established
that interest rates affect financial performance of the commercial banking sector
positively and to a significant extent while the rest of the selected macro-economic
variables have no significant effect on financial performance of the banking sector. The
study recommends the commercial banking sector in Kenya policy makers should
consider interest rates in their policy formulation to manage their effect on the financial
performance of the banking sector. The Kenyan Government through the Central Bank of
Kenya should come up with policies that create a conducive environment for commercial
banks to operate since it will translate to economic growth. | en_US |
dc.language.iso | en | en_US |
dc.publisher | University of Nairobi | en_US |
dc.rights | Attribution-NonCommercial-NoDerivs 3.0 United States | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/3.0/us/ | * |
dc.subject | The Effect of Selected Macro-economic Variables on Financial Performance of the Banking Sector in Kenya | en_US |
dc.title | The Effect of Selected Macro-economic Variables on Financial Performance of the Banking Sector in Kenya | en_US |
dc.type | Thesis | en_US |