The Effects of Capping Interest Rate on Profitability of Kenya Commercial Bank
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 2
Abstract
The main purpose of this study was to investigate the effects of interest rate capping on banks profitability of commercial banks in Kenya with a case study of KCB Bank Kenya Limited, Nairobi. The paper used descriptive research designwith time series data for the period September 2016 to December 2017 data gathered from theKenya Central bank.The data was subjected to stationarity test and necessary smoothening done. The multiple linear regression Modelwas used. The regression results showed that interest rate capping was negatively and statistically related to the bank’s profits at 5% level of significance. The paper therefore suggested that the government and banking institutions should mobilize more long-term capital from the market through pooling funds and long-term savings and deepening capital markets by incorporating the informal into the financial system sector.Increase awareness and strengthening the Credit Reference Bureau.
Authors and Affiliations
Matundura Erickson
Keywords
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- EP ID EP414553
- DOI 10.9790/5933-0902013437.
- Views 193
- Downloads 0
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