scholarly journals INFLUENCE OF COST OF CREDIT ON CONSUMER SATISFACTION: A CASE OF THE NIC BANK LIMITED

2017 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Christopher Mwangi ◽  
Dr. Paul Katuse
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Credit Card ◽  
Consumer Satisfaction ◽  
Sampling Technique ◽  
Primary Data ◽  
Infinite Population ◽  
Study Results ◽  
The Government ◽  
The Interest Rate

Purpose: The purpose of the study was to establish the influence of cost of credit on consumer satisfaction, a case of the NIC bank limited.Methodology: The descriptive survey research design was preferred for the study. The population of the study was over 10,000 credit card holders in NIC Bank. Snow balling sampling technique was appropriate for this study because credit card customers were not keen on cooperating because of the sensitivity of information gathered and only cooperated on referral from friends. Fishers’ formula was used for calculating the sample size of an infinite population which amounted to 384 but for the purpose of improving the response rate, the study added 16 more respondents to total up to 400. The study used primary data. The study used a questionnaire as the preferred data collection tool. Information was sorted, coded and input into the statistical package for social sciences (SPSS) for production of descriptive and inferential statistics. The results were presented using tables and pie charts to give a clear picture of the research findings.Results: Based on the findings, the study conclded that that credit card interest rate was competitive compared to other offerings in the market, the credit card interest rate is better than overdraft rates.  It was concluded that the credit card interest rate was affordable compared to shylock interest rates. Results led to the conclusion that the penalties were lower than those of competitors. Study results show that the credit card joining fee was affordable compared to other products, the credit card joining fee was lower than that of competitors. Results also led to the conclusion that the penalties were very high. Results also led to the conclusion that credit card interest rate were affordable compared to Sacco interest.Unique contribution to theory, practice and policy: Based on the findings, the study recommends that the Government should legalise the interest rate within the banks and make it affordable to the consumers. In addition the banks should lower the credit card joining fee as this will motivate more customers to join and therefore an additional benefit the banks.

scholarly journals EFFECT OF CUSTOMER SERVICE QUALITY ON CONSUMER SATISFACTION: A CASE OF THE NIC BANK LIMITED

2017 ◽  
Vol 2 (1) ◽  
pp. 39
Author(s):  
Christopher Mwangi ◽  
Dr. Paul Katuse
Keyword(s):  
Service Quality ◽  
Customer Service ◽  
Credit Card ◽  
Consumer Satisfaction ◽  
Service Failure ◽  
Sampling Technique ◽  
Primary Data ◽  
Infinite Population ◽  
Banking Business ◽  
Descriptive Survey

Purpose: The purpose of the study was to establish the effect of customer service quality on consumer satisfaction, a case of the NIC bank limited.Methodology: The descriptive survey research design was preferred for the study. The population of the study was over 10,000 credit card holders in NIC Bank. Snow balling sampling technique was appropriate for this study because credit card customers were not keen on cooperating because of the sensitivity of information gathered and only cooperated on referral from friends. Fishers’ formula was used for calculating the sample size of an infinite population which amounted to 384 but for the purpose of improving the response rate, the study added 16 more respondents to total up to 400. The study used primary data. The study used a questionnaire as the preferred data collection tool. Information was sorted, coded and input into the statistical package for social sciences (SPSS) for production of descriptive statistics. The results were presented using tables and pie charts to give a clear picture of the research findings.Results: Based on the findings, the study conclded that organizations must offer their customers quality service. It was also possible to conclude that customer service was the base for business expansion because of the stiff competition prevalent in the banking industry. Results also led to conclusion that the survival of banking business is dependent on customer service. Results also led to conclusion that the customers give firms the chance to correct a service failure.Unique contribution to theory, practice and policy: Based on the findings, the study recommends that banks should emphasize that the credit customer service operatives are honest. In addition the study recommends that the banks should give customers a chance to suggest on noted service failure.

scholarly journals EFFECT OF CUSTOMER INFORMATION ON CONSUMER SATISFACTION: A CASE OF THE NIC BANK LIMITED

2017 ◽  
Vol 2 (1) ◽  
pp. 20
Author(s):  
Christopher Mwangi ◽  
Dr. Paul Katuse
Keyword(s):  
Credit Card ◽  
Consumer Satisfaction ◽  
Credit Cards ◽  
Sampling Technique ◽  
Primary Data ◽  
Sufficient Information ◽  
Unique Contribution ◽  
Infinite Population ◽  
Customer Information ◽  
Ease Of Access

Purpose: The purpose of the study was to establish the effect of customer information on consumer satisfaction, a case of the NIC bank limited.Methodology: The descriptive survey research design was preferred for the study. The population of the study was over 10,000 credit card holders in NIC Bank. Snow balling sampling technique was appropriate for this study because credit card customers were not keen on cooperating because of the sensitivity of information gathered and only cooperated on referral from friends. Fishers’ formula was used for calculating the sample size of an infinite population which amounted to 384 but for the purpose of improving the response rate, the study added 16 more respondents to total up to 400. The study used primary data. The study used a questionnaire as the preferred data collection tool. Information was sorted, coded and input into the statistical package for social sciences (SPSS) for production of descriptive statistics. The results were presented using tables and pie charts to give a clear picture of the research findings.Results: Based on the findings, the study conclded that the organization did not provide enough information to enable the customers use credit cards wisely. Results also led to conclusion that Consumers should take credit cards with sufficient information on the credit terms. Results also concluded that that Consumers’ should have attitudes and perceptions towards credit cards. Results concluded that the proliferation of credit cards and their ease of access had given consumers increased opportunities for making credit purchases. Results also concluded that the organization should consider leveraging information on social sites with regard to finding a customer’s most recent location..Unique contribution to theory, practice and policy: Based on the findings, the study recommends that banks should emphasize on leveraging information on social sites with regard to finding a customer’s most recent location. In addition the study recommends that the banks should adopt sending credit card information through twitter and facebook. In addition, banks should invest in consumer groups to sensitive customers on credit card issues.

scholarly journals WOMEN EMPOWERMENT THROUGH ENTERPRISE DEVELOPMENT: DETERMINANTS OF GROWTH FOR WOMEN OWNED SMALL TO MEDIUM ENTERPRISES IN NAIROBI COUNTY, KENYA

2017 ◽  
Vol 2 (1) ◽  
pp. 46-72
Author(s):  
Lorna Kamau
Keyword(s):  
Sample Size ◽  
Significant Relationship ◽  
Small Businesses ◽  
Positive Relationship ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Competitive Environment ◽  
Primary Data ◽  
Study Results ◽  
The Government

 Purpose: The purpose of this study was to establish the determinants of growth for women owned SMEs in Nairobi County in Kenya.Methodology: The population of the study was 100 exhibitions which were spread across five zones in Nairobi County. The target population was 500 small businesses. Stratified random sampling technique was used to determine the sample size.  A sample size of 100 SMEs was used. This study used primary data which was collected through use of a questionnaire. Descriptive analysis was employed; which included; mean frequencies and percentages.  Inferential statistics such as correlation and regression analysis were used. The analysis was done using MS-EXCEL and Statistical Package for Social Sciences (SPSS) Version 17. The analyzed data was presented in frequency and percentage tables or pie charts.Results: The study results revealed that there was a positive and significant relationship between education and training and SME’s growth, there was negative and significant relationship between access to productive resources and SME’s growth, there was negative and significant relationship between competitive environment and SME’s growth and that there was a positive relationship between gender specific factors and SME’s growth. The results also revealed that there was a positive relationship between SME’s growth and women empowerment.Unique contribution to theory, practice and policy: The study recommended that the Government of Kenya (GOK), responsible authorities and the society at large should work hand in hand with women owners/managers of SME’s to aid them in terms of education and skills, finance and competitive environment in order to empower them.

scholarly journals INFLUENCE OF INTEREST RATE ON THE FINANCIAL PERFORMANCE OF AGRICULTURAL FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE

2017 ◽  
Vol 1 (3) ◽  
pp. 19
Author(s):  
Dr. Samuel Kanga Odalo ◽  
Dr. George Achoki ◽  
Dr. Amos Njuguna
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Interest Rates ◽  
Financial Institutions ◽  
Secondary Data ◽  
Primary Data ◽  
Multivariate Regression Model ◽  
Interest Rate Spread ◽  
Using Data ◽  
The Interest Rate

Purpose: The purpose of this study was to establish to establish the influence of interest rate on the financial performance of agricultural firms listed at the Nairobi Securities Exchange.Methodology: The research design adopted was descriptive and causal (explanatory). A census approach was adopted and all the seven listed agricultural companies were taken as the population. The respondents’ sample was from finance departments at all levels and 220 questionnaires were administered. Primary data was collected using questionnaires while the secondary data was collected using data collection sheets from the firms as well as from the Nairobi Securities Exchange and CMA records. The particular inferential statistic was regression and correlation analysis. Panel data methodology was employed using a multivariate regression model to test the hypotheses and link the variables.Results: The findings revealed that interest rate has a positive and significant relationship with ROA, ROE and EPS. In addition, the findings from the interaction of the independent variables and the interest rate revealed that interest rate moderate the effect of financial performance of agricultural firms listed at the Nairobi Securities Exchange.Unique contribution to theory, practice and policy: The study recommends that financial institutions and banks in Kenya should assess their clients which include agricultural firms listed in NSE while setting up interest rates policies, as ineffective interest rate policies can increase the level of interest rates and consequently cost of borrowing and negate financial performance of the borrowing firms. The study also recommends that the Central Bank should apply stringent regulations on interest rates charged by financial institutions so as to regulate their interest rate spread.

The “black box” of the interest rate channel of monetary policy

2020 ◽  
pp. 5-21
Author(s):  
S. R. Moiseev
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Open Economy ◽  
Small Open Economy ◽  
Financial Sector ◽  
General Terms ◽  
The Government ◽  
The Interest Rate ◽  
Interest Rate Channel

In the economic literature authors believe that central banks manage long-term interest rates on loans through the short-term money market interest rate in order to maintain price stability and balanced economic growth. However, macroeconomic theory tells extremely sparingly about the interest rate channel of monetary policy. In general terms, it conducts changes through a term premium and expectations in the government securities market. In applied research, economists only observe the final reaction of lending rates to the non-financial sector. Economists traditionally believe that the interest rate channel requires a developed financial sector. In some cases, in particular, at zero rates or in a small open economy that depends on the exchange rate, the interest rate channel works poorly. However, its effectiveness can be maintained without developed financial markets. The answer is the pricing of banking loans.

scholarly journals The effect of interest rates, exchange rates and capital structure on banking profitability of BUMN and Private Go Public in Indonesia

2021 ◽  
Vol 10 (3) ◽  
pp. 338-351
Author(s):  
Debby Wulandari ◽  
Agus Harjito
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Capital Structure ◽  
Exchange Rates ◽  
Interest Rates ◽  
Quantitative Research ◽  
Secondary Data ◽  
Sampling Technique ◽  
Analysis Technique ◽  
The Interest Rate

This study aims to examine and analyze the influence of interest rates, exchange rates and capital structure on profitability in state-owned and private banking go public in Indonesia. This research is quantitative research based on the study of empirical rational principles. Collecting data using secondary data with purposive sampling technique, the sample consists of Commercial Banks Business Group (BUKU IV) with core capital > Rp 30 trillion. The data analysis technique used panel data regression analysis using EVIEWS version 11 software. The results showed that the interest rate had a positive and significant effect on banking profitability; Exchange Rate has a negative and significant effect on Banking Profitability; Capital Structure has a positive and significant effect on Banking Profitability; Interest Rate, Exchange Rate, and Capital Structure simultaneously have a positive and significant effect on Banking Profitability

scholarly journals FASILITAS DISKONTO (DISCOUNT WINDOWS) SEBAGAI INSTRUMEN MONETER DITINJAU DALAM PERSPEKTIF EKONOMI ISLAM

2019 ◽  
Vol 4 (1) ◽  
pp. 71
Author(s):  
RINA EL MAZA ◽  
EGI PUTRA SETIAWAN
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Commercial Banks ◽  
Profit Sharing ◽  
The Public ◽  
The Government ◽  
Islamic Economic ◽  
The Interest Rate

The government has an important role in the welfare of the people's economy. One of them is through the role of the central bank by carrying out monetary policy. This policy was adopted by the central bank or Bank Indonesia (BI) through several instruments, including through regulating discount rates for commercial banks. In this case, BI sets the inflation target as a reference for determining interest rates. When the inflation rate exceeds the targeted, BI will raise interest rates which in turn will reduce the credit issued by commercial banks to the public, because commercial banks must pay higher interest rates to the central bank. And the results of the analysis that the interest rate charged in the credit (Lending Facility) discount facility is classified as an act of usury. Meanwhile, the profits obtained from the deposit of funds in the Facility Deposit transaction are not permitted in the Islamic economy, because in the Islamic economy there is no interest rate but profit sharing, given the fixed and concrete interest rates. In addition, the discount facility is also incompatible with some Islamic economic principles, including; the principle of Illahiyah, Justice, and the government.

scholarly journals DETERMINANTS OF SAVING CULTURE AMONG HOUSEHOLDS IN KENYA. A SURVEY OF WORKING POPULATION IN NAIROBI COUNTY.

2016 ◽  
Vol 1 (1) ◽  
pp. 16-38
Author(s):  
Sarah Momanyi ◽  
Samuel Wainaina
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Durable Goods ◽  
National Income ◽  
Demographic Factor ◽  
Working Population ◽  
Study Results ◽  
The Future ◽  
The Government ◽  
The Interest Rate

Purpose: The purpose of this study was to establish the determinants of saving culture among households in Kenya’s survey of households residing in Nairobi County.Methodology: The research used a descriptive research design.  The target population for this research study included the working population in Nairobi County. According to 2009 Census, the entire working population is over 985,016. This study adopted convenience sampling method. The sample size of 150 was arrived at using a sampling formula. Descriptive statistics such as mean and frequencies and inferential statistics such as correlation were used. These measures were calculated using Statistical Package for the Social Sciences (SPPS 17.0) software. Results: The study finding was to establish the motives for savings among working population in Nairobi County. Results led to the conclusion that the top five rated motives for saving were; saving for down payment for durable goods, saving for future emergencies, accumulate funds for starting a business, reserve for future necessities and to gain financial independence in the future.Other motives that were also rated highly include; to secure the future of their children and their needs, savings plan for the long term, save as a precaution since the future is unknown, inheritance for my children. The least ranked motives were to buy a house or durable goods, old age, holidays, and to have their money tied up for longer periods of time. The study findings also indicated that the level of education is a significant demographic factor that influences saving culture. The study findings indicated that respondents who were more likely to save were highly educated and those that were lowly educated were less likely to save. Furthermore, study findings led to the inference that age is a significant demographic factor that influences saving culture. The study findings revealed that young and middle aged people are more likely to save than old people. Results indicate that marital status is a significant demographic factor that influences saving culture. The study findings indicated that the married were more likely to save than single. Results also indicate that the monthly income is a significant demographic factor that influences saving cultureThe results led to conclusion that interest rates affect the amount they saved. This implies that interest rate has a significant effect on savings. Results led to conclusion that statement that the higher the interest rate the higher they save. This implies that higher the interest rate leads to low saving. This further implies that a negative significant relationship exists between interest rate and saving. The study findings also indicate that majority disagreed with the statement that inflation affects the amount they save. The results also indicated that majority agreed with the statement that they tended to save more in an unstable inflation environment. This implies that inflation had a positive effect on saving among working population in Kenya. The majority agreed that the level economic growth affected the amount they saved. The results also indicated that the majority agreed with the statement that they tended to save more during periods of high economic growth. This led to conclusion that economic growth had a positive and significant effect on savings among the working population in Kenya.Unique contribution to theory, practice and policy: In line with study results, it is recommended that the government and women empowerment organizations need to encourage savings among women. The education systems should be friendly to the working population in Nairobi through lowering of university entry costs and the improvement in the quality of education offered by middle level colleges. This is because it would positively influence savings. The government of Kenya may improve the income of the working population by reducing taxes on income and creating more employment opportunities. This would effectively boost savings. According to results, it is recommended that the government should adjust its fiscal policies by collecting more taxes and spending more as this will improve the level of national income.

Specifics of using credit banking instruments in conditions of the Russian banking system development

2020 ◽  
Vol 13 (4) ◽  
pp. 383-397
Author(s):  
N.S. Lukovnikova
Keyword(s):  
Interest Rates ◽  
Credit Card ◽  
System Development ◽  
Banking System ◽  
Federal District ◽  
Government Support ◽  
Payment Instruments ◽  
Study Results ◽  
Lending Policy ◽  
The Government

Subject. Uncertainty and risks of the banking system development have increased against the background of identified inefficient credit and payment instruments. The conceptual framework for the said system development includes not only the State support to backbone banks, but also establishing the cause-effect relationship between the offered banking product and the service, and the conditions and legal grounds stipulated for banks, having basic and universal licenses. Objectives. The purpose is to identify the specifics of banking operations related to credit products, considering the changes in distribution of payment instruments of banks in the credit card market. Methods. The study employs empirical and theoretical methods, like formalization, observation, comparison, test of cause and effect relationships. The systems approach forms a basis of the study. Results. I consider conditions for obtaining the government support for targeted loans, including the participation in major innovative projects and programs and the need to balance financing for the acquisition of intangible assets through subsidized interest rates on loans. It is recommended to introduce the concept of ‘credit banking instruments’ for scientific and economy-related purposes. Conclusions. Improving the efficiency of the use of credit banking instruments should be implemented on the basis of a comprehensive system of preventing financial losses, diversification of loan portfolio and optimization of payments with bank card holders, taking into account the lending policy, formed in the context of activities of a particular federal district and the subject of the Russian Federation.

scholarly journals Interest Rate Theory in Islamic Economic Perspective

2021 ◽  
Vol 1 (1) ◽  
pp. 46-50
Author(s):  
Robist Hidayat
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Intrinsic Value ◽  
Rate Theory ◽  
Economic Perspective ◽  
Absolute Increase ◽  
Descriptive Research ◽  
The Government ◽  
Islamic Economic ◽  
The Interest Rate

Inflation is a condition in which there is a sharp (absolute) increase in prices that lasts continuously for a long period of time followed by a decline in the real (intrinsic) value of a country's currency. circulating through an increase in bank interest rates. For this reason, the government carries out monetary policy by suppressing the money supply through increasing bank interest rates. However, the interest rate has various kinds, namely classical interest rate theory, neo classical, modern keyness and hicks. Therefore, this study focuses more on interest rates and the theory of interest rates by experts. So that it produces descriptive research.  

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