Bank size and bank earnings volatility. A survey of Kenya banking system
Journal Title: Journal of Economics, Finance and Management Studies - Year 2023, Vol 6, Issue 02
Abstract
Based on the increased interest on bank size in literature, we sought to investigate the effect of large banks on bank earnings volatility in Kenya banking system. Our data cover the period from 2005 to 2020. Included in our analysis is ROA volatility (ROE volatility) and market volatility, as measures of bank earnings volatility at bank level and at market level respectively. In addition, we used bank risk, at individual bank level and at market level, for further analysis in our model. Our findings have shown that bank size positively and significantly affect the bank earnings volatility as measured using ROA volatility, but an inverse and insignificant effect on ROE volatility. We also find that growth in bank size positively and significantly affect their individual risk exposure, but does not increase the market risk. Our findings have policy implications in considering optimal bank size, bank risk and systemic risk.
Authors and Affiliations
Gabriel Kamau KUNG’U,Régine UWIHIRWE,Ambrose NZAMALU
Keywords
Related Articles
- EP ID EP726825
- DOI 10.47191/jefms/v6-i2-35
- Views 63
- Downloads 0
The role of the World Trade Organization in achieving the interests of developing countries “Egypt Case”
The principles of the World Trade Organization (WTO) included a set of exceptions to help developing countries to speed up the process of their economic development. Therefore, the research problem focused on the extent...
Analysis of Levels of Job Satisfaction Based on Biographical Characteristics: A Study on Service Sector Workers in Province of Lampung
Job satisfaction is a form of welfare that must be obtained by an individual in his work. There are many variables that affect the level of job satisfaction. The purpose of this study was to determine differences in leve...
Supply Shocks and Fuel Price Fluctuations in Kenya
Governments are on the edge to make the economy more conducive to both investors and its citizens in oil and petroleum businesses. Some challenges are however still hindering the provision of fuel at stable prices. The s...
The Influence of BCA E-Banking Service Quality on Customer E- Satisfaction And E- Loyalty
The development of banking services through electronic media was increasingly widespread along with the rapid growth of information technology. Technological developments through digital transformation in the banking sys...
Global Public Debt Since 1995: Long-Term Trends, Current Phase, Medium-Term Outlook for Economic Growth
Topic. The paper aims to identify long-term trends in global public debt (since 1995), provide its current overview (the magnitude of debt, concentration levels among participants and instruments, risk factors in the cur...