Effect of Financial Sector Policies on Commercial Bank Performance in Kenya: A critical review
Journal Title: IOSR journal of Business and Management - Year 2018, Vol 20, Issue 1
Abstract
This paper examines the purview to which financial sector policies influencecommercial bank performance in Kenya. The banking environment in Kenya has, for the past decade, undergone many regulatory and financial reforms, such as capital adequacy, liquidity management, credit risk management and interest rate management policies to include risk and consumer protection. These reforms have brought about many structural changes in the sector and have also encouraged foreign banks to enter and expand their operations in the country. Kenya’s financial sector is largely bank-based as the capital market is still considered narrow and shallow. Banks dominate the financial sector in Kenya and as such the process of financial intermediation in the country depends heavily on commercial banks. The performance of the banking industry in the Kenya improved tremendously during the 2003-2013 period and it has mixed feelings on the reason behind the growth, it’s attested to financial innovation and financial sector deepening. Financial sector policies and performance of commercial banks has been a concern in the financial industry around the world. Commercial Bank performance from the point of view of shareholders of a bank is obtaining profit by maximizing the revenue and minimizing the costs. Therefore, this article develops a conceptual framework that analyses the relationship between financial sector policies influences commercial bank performance in Kenya.
Authors and Affiliations
Julius Robert Oketch, Patrick Mutai Cheruiyot, Prof. Gregory S. Namusonge, Prof. Maurice M. Sakwa
Keywords
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- EP ID EP409550
- DOI 10.9790/487X-2001067186.
- Views 43
- Downloads 0
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