scholarly journals THE EFFECT OF MONETARY POLICY ON FINANCIAL PERFORMANCE OF THE COMMERCIAL BANKS LISTED ON THE NAIROBI SECURITIES EXCHANGE

2017 ◽  
Vol 1 (1) ◽  
pp. 74
Author(s):  
Kerongo Maatwa Meshack ◽  
Mrs Winnie Nyamute
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Performance ◽  
Commercial Banks ◽  
Total Population ◽  
Secondary Data ◽  
Macroeconomic Policies ◽  
Bank Rate ◽  
Effect Of Monetary Policy ◽  
Descriptive Survey

Purpose: The purpose of this study was to establish the effect of monetary policy on the financial performance of commercial banks listed in the Nairobi securities Exchange in KenyaMethodology: The study adopted a descriptive survey of the commercial banks listed on the NSE. The total population consisted of all 11 commercial banks listed on the NSE as at 30 June 2015. Since the population of the study was small, the study used secondary data which was readily available from both the Central Bank of Kenya and the Nairobi Securities Exchange. All the listed commercial banks were included hence a census study.Results: The findings from the study confirmed that monetary policy tools such as CBR, CRR and OMO had varying degrees of relationship with the financial performance of the commercial banks listed on the NSE. The study also revealed that OMO rates positively influenced returns of the listed commercial banks at the NSE .This study also established that OMO rates were positively correlated with the financial performance of the commercial banks listed on the NSE while the Central bank rate and the CRR rate negatively influenced the financial performance of commercial banks listed on the NSE.Unique contribution to theory, practice and policy: This study therefore recommended that the Country should handle its macroeconomic policies appropriately as the changes in the macroeconomics like CBR, CRR and OMO bring about devaluation of the currency and affect the performance of the commercial banks listed in NSE.

scholarly journals Corporate Governance, Financial Performance and Firm Value;

2019 ◽  
Vol 8 (4) ◽  
pp. 41-48
Author(s):  
Evans Machero Ochego ◽  
Job Omagwa ◽  
Stephen Muathe
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Central Bank ◽  
Financial Performance ◽  
Commercial Banks ◽  
Firm Value ◽  
Secondary Data ◽  
Target Population ◽  
Capital Requirements ◽  
Mediating Effect

Firm value is dependent on corporate which leads to increased value. High valued firms attract more investors. Towards firm value protection, minimum capital requirements were raised by the Central Bank of Kenya from 250 million to 1 billion shillings on commercial banks to cushion bank shareholders value. Despite the increased oversight and regulatory efforts on corporate governance to protect and enhance firm value, some commercial banks have recorded low firm value. Hence, this study sought to investigate the mediating effect of financial performance on the relationship between corporate governance and firm value of commercial banks in Kenya. The study was anchored on Agency Theory. Explanatory research design was adopted. Target population was forty four Kenyan commercial banks, where a census was conducted. Secondary data was collected from published financial statements and bank websites for the period 2009 to 2018. STATA version 13.0 was used for data analysis. Descriptive and inferential statistics specifically panel regression was used in data analysis. The study findings established that there is a statistically significant effect between financial performance and firm value of commercial banks in Kenya. Therefore, the study concluded that firms with good financial performance have high firm value. And as such, these calls for the management of the commercial banks improve financial performance which will go a long way in improving firm value. There is also need for Central bank of Kenya, Capital Markets Authority and Nairobi Securities Exchange to emphasis on corporate governance and short term goals to enable achievement of long term goals .  

scholarly journals EFFECT OF CASH RECONCILIATION ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA

2017 ◽  
Vol 2 (7) ◽  
pp. 13
Author(s):  
Mactosh Onwonga ◽  
Prof. George Achoki ◽  
Dr. Bernard Omboi
Keyword(s):  
Financial Performance ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Multiple Linear Regression Model ◽  
Secondary Data ◽  
Primary Data ◽  
Multi Stage ◽  
Handling Practices ◽  
Comparison Of The Results ◽  
Descriptive Survey

Purpose: The main aim of the study was to examine the effect of cash reconciliation on the financial performance of commercial banks in Kenya.Methodology: The research was carried out through a descriptive survey research design. The study population was all the 43 commercial banks registered and licensed to operate in Kenya. A multi stage sampling approach was used. In the first stage, a census of all the 43 commercial banks was conducted, that is, the units of analysis were the commercial bank. In the second stage, purposive sampling was used where two respondents from every organization were taken. The study used both primary and secondary data for analysis. Primary data was collected using questionnaires while secondary data was obtained using secondary data collection template. A multiple linear regression model was used to link variables.Findings: The study findings indicated a positive correlation between cash reconciliation and financial performance of commercial banks. Cash reconciliation was positively and significantly related to both ROE and ROA. The study concluded that cash reconciliation is positively and significantly related to financial performance of commercial banks in Kenya.Unique contribution to theory, practice and policy: The study recommends that commercial banks and other financial institutions involved in handling of cash should put in place proper reconciliation practices. The commercial banks should focus on increasing the number of times books are reconciled, increase the regularity of auditing the cash books, put in place and implement a policy on cash reconciliation, training its staff on conducting cash reconciliation and segregating the duties of cash reconciliation other duties so as to evolve specialization. The study recommended further studies to establish the effect of cash handling practices on financial performance of other financial institutions other than commercial banks. This will be crucial in comparison of the results and identification of more research gaps for future studies.

scholarly journals Effect of monetary policy on economic growth in nigeria in the post structural adjustment programme

2021 ◽  
Vol 12 (8) ◽  
pp. 2364-2379
Author(s):  
Kelechi Johnmary Ani ◽  
Chigozie Onu
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rate ◽  
Central Bank ◽  
Structural Adjustment ◽  
Secondary Data ◽  
Financial Sector ◽  
Ordinary Least Squares ◽  
National Bureau ◽  
Effect Of Monetary Policy

The study investigated the effect of monetary policy on economic growth during post structural adjustment programmer in Nigeria. It used the expo-facto design. Secondary data for the period of 1985-2015 were utilized. The data were extracted from the Central Bank of Nigeria (CBN) Statistical Bulletin and the National Bureau of Statistics (NBS). The linear regression with the application of Ordinary least Squares (OLS) technique was employed to estimate the parameters of the model numerically. Finding revealed that broad money supply had a positive and significant effect on economic growth in Nigeria during post structural adjustment programmer from 1986-2015. Interest rate had a negative and significant effect on economic growth in Nigeria during the same period and inflation rate had a positive and insignificant effect on economic growth in Nigeria at the same time. The study recommended that Central Bank of Nigeria should facilitate the emergence of market based interest rate that would attract both domestic and foreign investments, as well as create jobs, and promote non-oil export, while reviving industries that are currently operational, far below installed capacity. In order to strengthen the financial sector, the Central Bank has to encourage the introduction of more financial instruments that are flexible enough to meet the risk preferences and sophistication of operators in the financial sector.

Shariah Banking and Financial Performance of Selected Commercial Banks in Kenya

2019 ◽  
Vol 3 (VI) ◽  
pp. 50-66
Author(s):  
Faith Kwamboka Ongera ◽  
Fredrick Ndede
Keyword(s):  
Central Bank ◽  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Business Environment ◽  
Performance Comparison ◽  
Research Approach ◽  
Efficiency Ratio ◽  
Asset Quality

Financial performance is important among banking institutions. The ability to reinvest earnings and aggressively compete for the market share in the business environment is determined by the level of profits. In recent past, Kenyan commercial banks financial performance has declined due to a number of factors ranging from decline in PAT, interest capping, increased competition and rise in non-performing loans. This has created a need for income diversification where commercial banks are diversifying into shariah banking so as to attract investors with an interest in shariah compliant products and services. The main research objective was to investigate shariah compliant banking effects on the selected Kenyan commercial banks in terms of financial performance. The independent variables employed in the study were liquidity, efficiency and asset quality as determinants of financial performance of commercial bank. There are major gaps in the financial performance literature regarding shariah compliant banking. Minimal research studies have been carried on financial performance comparison between commercial and shariah compliant banks in Kenya. In order to achieve the research objectives, descriptive research approach was employed in the study. A census study was carried out; secondary data from relevant central bank data will be used. The population was the four commercial banks operating shariah banking in Kenya. Secondary data from 2013 to 2017 was obtained from the central bank website and the audited financial statements of the selected licensed commercial banks operating shariah banking in Kenya. Data analysis was achieved through use of descriptive, correlation and regression methods. Data was processed through Statistical Package for Social Science software (SPSS). Data was analyzed using descriptive and inferential analysis and presented using charts and tables. Ratio analysis and trend analysis was used in the study.  The study aimed at using the framework of innovation diffusion theory to suggest a model for adoption of shariah banking in the Kenyan banking industry, modern portfolio theory to explain the importance of diversified portfolio in the Banking Sector and Agency Theory. The study found commercial banks’ performance was as a result of that Shariah banking ratio then by liquidity ratio, efficiency ratio, asset ratio, and finally bank size. Bank size had a ratio of 0.0128, expense management ratio 0.0131, efficiency ratio 0.0024, Asset quality 0.0006, liquidity ratio 0.0120 and sharia banking ratio was 0.0025. It was revealed by the research that commercial banks’ adoption of shariah banking positively influenced their financial performance. This research recommends that same studies to be carried out in Africa’s Eastern part to compare since shariah banking’ concentration is on the Asian and West Africa countries. The research recommends that commercial banks management take advantage of its existing branch networks to open shariah banking alongside its core business in tapping the potential new clientele.

Analisis Kinerja Keuangan Bank Umum Syariah Melalui Pendekatan Islamicity Performance Index

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Safaah Restuning Hayati ◽  
Mutiah Hanifah Ramadhani
Keyword(s):  
Financial Performance ◽  
Commercial Bank ◽  
Performance Index ◽  
Commercial Banks ◽  
Secondary Data ◽  
Sampling Technique ◽  
Descriptive Research ◽  
Index Approach ◽  
Principles Of Justice ◽  
Quantitative Descriptive

This study aims to determine how the financial performance of Islamic commercial banks in Indonesia through the islamicity performance index approach for the period 2013-2017, by the principles of justice, halalness, and purification. This study using quantitative descriptive research. The number of banks sampled are five Islamic commercial banks in Indonesia that have been selected, through a purposive sampling technique first. These banks are BRI Syariah, BNI Syariah, Mandiri Syariah, BCA Syariah, and Victoria Syariah. The type of data used is secondary data taken from the financial statements of each islamic commercial bank that is sampled. Through the islamicity performance index approach, the results of this study indicate that the financial performance of islamic commercial bank is unsatisfactory, based on the average of the variables that have been processed in accordance with predicate valuation standards.

THE EFFECT OF THE SHARIA SUPERVISORY BOARD AND THE BOARD OF COMMISSIONERS ON THE FINANCIAL PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA

2021 ◽  
Vol 3 (1) ◽  
pp. 60-73
Author(s):  
Ahmad Fauzul Hakim Hasibuan ◽  
Fuadi Fuadi ◽  
Angga Syahputra
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
Supervisory Board ◽  
Secondary Data ◽  
Sampling Technique ◽  
Islamic Banks ◽  
Purposive Sampling ◽  
Islamic Bank

This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank

scholarly journals Effect of Monetary Policy on Financial Intermediation in Nigeria

2020 ◽  
pp. 22-36
Author(s):  
Chukwu, Kenechukwu Origin ◽  
Ogbonnaya-Udo, Nneka
Keyword(s):  
Monetary Policy ◽  
Financial Intermediation ◽  
Research Work ◽  
Secondary Data ◽  
Causality Test ◽  
Explanatory Variables ◽  
Financial Infrastructure ◽  
Effect Of Monetary Policy ◽  
The Cost ◽  
Reserve Ratio

The study examined the effect of monetary policy on financial intermediation in Nigeria. Secondary data were collected from Central Bank of Nigeria statistical bulletin spanning from 1988 to 2018.The research work selected Nigeria as its sample and used the VECM to test the effect of the explanatory variables (Monetary Policy Rate, Cash Reserve Ratio, Loan to Deposit Ratio and Liquidity Ratio) on the dependent variable (Total Domestic Bank Credit).The findings from the study revealed that monetary policy has insignificant effect on intermediation in Nigeria. The granger causality test also shows a unidirectional causality between monetary policy and intermediation in Nigeria. The results suggest that lending interest rate is still high while deposit rate is low and this discourages savings and borrowing in the country. The study recommends among others that monetary policy should be reviewed in order to lower the cost of borrowing (lending rate) so as to encourage investors to borrow more. Commercial banks should try to increase its deposit rates which will help them to mobilize more deposits, as this will enhance their lending services. Financial infrastructure in the country should be improved upon as this will help banks in deposit mobilization especially the unbanked in the country.

scholarly journals The Effect of Branchless Banking Strategy on the Financial Performance of Commercial Banks in Kenya

2017 ◽  
Vol 8 (4) ◽  
pp. 167 ◽  
Author(s):  
Gift Kimonge Dzombo ◽  
James M. Kilika ◽  
James Maingi
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Exploratory Research ◽  
Electronic Banking ◽  
Economic Activities ◽  
Significance Level ◽  
Negative Effect ◽  
The Individual

The Banking sector acts as the life blood of modern trade and economic development. Commercial banks influence, facilitate and integrate the economic activities like resources mobilization, poverty elimination, production, and distribution of public finance. The financial performance of commercial banks has great implications in the financial sector and in the country at large, and will still remain an important subject of concern by all the stakeholders in the banking industry. In the last two decades, a lot of banking innovation has taken place in order to improve commercial banks financial performance. Branchless banking which involves the use of agency banking and electronic banking channels in the distribution of banking products and services is one such innovation. This study purpose was to evaluate the effect of branchless banking on the financial performance of commercial banks in Kenya. The specific objectives of the study were to analyze the individual effects of agency banking and electronic banking channels on the financial performance of commercial banks in Kenya and the combined effect of both agency and electronic banking on the financial performance of commercial banks in Kenya. The study adopted an exploratory research design. A survey of all the 42 licensed commercial banks in Kenya was done. Both primary and secondary data on branchless banking and financial performance of banks was obtained from the individual commercial banks, Central Bank of Kenya banking annual supervision reports respectively. Return on Assets (ROA) was used as the main indicator of commercial banks financial performance. The amount of investment in agency and electronic banking was used as indicator for agency and electronic banking. Data analysis was done using SPSS and STATA statistical softwares. Descriptive statistics, diagnostic tests and tests of hypothesis were done. Data was presented using tables and charts. Study findings indicated that when used in isolation; both agency and electronic banking had a significant negative effect on the financial performance of commercial banks at 5 percent significance level. However, when agency and electronic banking channels were used together as a multichannel strategy, they had a significant positive effect on bank’s financial performance at 5 percent significance level. The study recommends that for positive returns, commercial banks should invest in both agency and electronic banking as a multichannel strategy since these channels are complimentary to each other.

scholarly journals The effect of monetary policy of Central Bank on activities of Tehran Stock Exchange

2013 ◽  
pp. 2307-2314 ◽  
Author(s):  
Hossein Vazifehdust ◽  
Karim ghalmegh ◽  
Kianoush Nazari Ameleh
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Stock Exchange ◽  
Effect Of Monetary Policy

scholarly journals The Sensitivity of Central Bank Interest Rate on Commercial Banks’ Stock Market Returns in Kenya

2021 ◽  
Vol 7 (5) ◽  
pp. p72
Author(s):  
Micah Odhiambo Nyamita ◽  
Martine Ogola Dima
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Stock Returns ◽  
Commercial Banks ◽  
Secondary Data ◽  
Market Returns ◽  
Cross Sectional ◽  
Stock Market Returns ◽  
Panel Data Regression

Commercial banks occupy a significant position in the transmission of monetary policy through the financial market. Furthermore, commercial banks have assets and liabilities which are interest rate sensitive, and their stock returns are believed to be particularly responsive to changes in the central bank base lending rates. Therefore, this study investigated the sensitivity of central bank interest rate changes on stock returns of listed commercial banks in Kenya for nine year period, from 2006 to 2014. The study used a hybrid of cross sectional and longitudinal quantitative surveys method, applying GMM panel data regression model on the secondary data from the 11 listed commercial banks in Kenya. The study found out that there is a significant strong positive sensitivity of average annual changes in central bank interest rates (CBR) on the stock returns of the listed commercial banks in Kenya, from 2006 to 2014, measured using CAPM. Hence, listed commercial banks’ managers in Kenya should monitor, keenly, the changes in the central bank interest rates and make investor related decisions accordingly.

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