ASSET QUALITY AND FINANCIAL PERFORMANCE OF TIER IV COMMERCIAL BANKS IN KENYA

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  • Ayiro Roselyne MBA Student, Kaimosi Friends University, Kaimosi, Kenya
  • Wanyama Mackton Department of BAMS, Kaimosi Friends University, Kaimosi, Kenya
  • Evans Kiganda Dr., Department of Economics, Kaimosi Friends University, Kaimosi, Kenya

DOI:

https://doi.org/10.46827/ejefr.v6i3.1347

Klíčová slova:

asset quality, tier IV commercial banks, financial performance

Abstrakt

The main objective of the study was to assess the influence of asset quality on the financial performance of tier IV commercial banks in Kenya. The study was guided by the scientific theory of management, Transaction Cost theory and Contingency theory. This study employed a longitudinal research design. The target population was 13 tier IV commercial banks in Kenya as at 2022 from the Central Bank of Kenya’s website. Panel data was analyzed using STATA. Pearson’s product-moment correlation coefficient depicted r = -0.4306, a p-value of 0.0000 which is significant for asset quality. The regression coefficient was -0.14, a p-value of 0.013, for asset quality (AQ) and financial performance (ROE) at a 5% level of significance. These results indicate that Asset Quality had a significant influence on financial performance. It was recommended that commercial banks should use their assets efficiently and effectively to yield optimum results.

JEL: G21; G29; G38

 

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Biografie autora

  • Ayiro Roselyne, MBA Student, Kaimosi Friends University, Kaimosi, Kenya

    Roseline Ayiro is an MBA student at Kaimosi Friends University, Kenya.

  • Wanyama Mackton, Department of BAMS, Kaimosi Friends University, Kaimosi, Kenya

    Dr. Evans Kiganda is a Lecturer at Kaimosi Friends University, Kenya and Head of the Department of Economics, Kenya.

  • Evans Kiganda, Dr., Department of Economics, Kaimosi Friends University, Kaimosi, Kenya

    Dr. Mackton Wanyama is a Lecturer at Kaimosi Friends University, Kenya in the Department of Economics.

Reference

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Stažení

Publikováno

2022-10-17

Číslo

Vol 6 No 3 (2022)

Sekce

Articles