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 Impact of Bancassurance on Financial Performance of Private Commercial Banks in India

2019 ◽  
Vol 8 (6S3) ◽  
pp. 2027-2034
Keyword(s):  
Financial Performance ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Secondary Data ◽  
Primary Data ◽  
Best Management ◽  
Regulatory Policies ◽  
Private Banks ◽  
Current Scenario ◽  
The Impact

In order to get competitive advantage, many Financial Institutions are sharing resources in the current scenario. To ward off competition Financial Institutions have tied up with the banks which is termed as bancassurance. The present study is focused on studying the impact of bancassurance on the financial performance of the privately owned commercial banks in India full stop the data was collected from 180 respondents working in 6 private banks of India. With the help of a questionnaire the primary data is collected and the secondary data was collected from the respective Bank sites. It was found that banks should come up with optimum optimal regulatory policies that won't allow them to compromise with the banks performance. And they have to recruit the best management talents so that right decision, smooth handling of the risk can be done by the banks

The Effect of Product and Service Innovations on the Financial Performance of Commercial Banks in Kenya

2020 ◽  
Vol 2 (1) ◽  
pp. 56-68
Author(s):  
Gladys Chepngetich Tonui; Patrick Kibati; John Kipkorir Tanui
Keyword(s):  
Financial Performance ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Banking Sector ◽  
New Technology ◽  
New Products ◽  
Secondary Data ◽  
Internet Banking ◽  
Primary Data ◽  
Product Service

The objective of this study was to establish the effect of product /service innovations on the financial performance of commercial banks in Kenya. The 40 commercial banks was the population of this study which were in operation in Kenya as at December, 2017. Both primary and secondary data were used in the study. Explanatory research design was used. Questionnaires were used to gather primary data. Secondary data was collected from Central Bank annual report to validate communicative and validity of primary data. Quantitative analysis in the research was facilitated by Statistical Package for Social Sciences (SPSS), the completed questionnaires was examined and the information for each item was further processed and analysed. The results obtained was further presented in charts and tables. Regression and correlation analysis were used to study the relationship between the dependent and the independent variables of the study. These were employed to analyze the data and find out whether financial performance of commercial banks was influenced by banks innovations. The results showed that most commercial banks have concentrated on their profits by creating new products and services which have minimized their operational costs. This study used Cronbach Alpha test of internal consistency to analyze the accuracy of the research tool based on pilot data.  The study recommended that banks should consider incorporating the new technology as it will increase the firms’ performance and to ensure their new products and services, are readily available in the market. The study recommended that the banking sector ought to continue investing on more innovative delivery channels since this improves banks capability to regulate expenditure. These will in turn, facilitates reduction in cost in every unit of service thus improved return on assets to financial institutions effective monitoring of accounting and auditing. Financial institutions should ensure that the banking innovations are well secured for customers to have confidence in using mobile banking and internet banking.

scholarly journals Assessment of CSR Practices in Nepalese Commercial Banks (A Comparative Study of RBBL, SCBL & NABIL)

2019 ◽  
Vol 22 (2) ◽  
pp. 11-20
Author(s):  
Kapil Khanal
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Commercial Banking ◽  
Annual Reports ◽  
Primary Data ◽  
Secondary Source ◽  
Secondary Sources ◽  
Questionnaire Method

 Objective: To assess the corporate social responsibility practices in Nepalese commercial banking sector. Methods and Materials: Primary and secondary sources of data were used in the study. The primary data were collected through direct questionnaire method from 60 employees of sampled commercial banks. The secondary source was through journals, textbooks and annual reports of Nepal Rastra Bank. SPSS and Microsoft excel were used to analyze the collected data. The value of Cronbach’s Alpha (α) of overall questionnaire is 0.92, which suggests the reliability of primary data. Descriptive and explorative research designs were used to analyze the primary and secondary data. Results and Conclusion: Responses from all the respondents of commercial banks regarding CSR and Non-Financial Performance clearly imply that CSR has an influence on the Non-Financial Performance. In terms of ‘R2’, CSR impacts both Brand Image and Brand Awareness (i.e. 0.987). This clearly indicates that more than 98.7% variance of both non-financial performances has been explained by CSR. In terms of ‘R2’, CSR impacts less in financial performance (i.e. 0.149). This clearly indicates that only than 14.9% variance of financial performance has been explained by CSR.

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.

scholarly journals INFLUENCE OF BANK STABILITY ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN SOUTH SUDAN

2019 ◽  
Vol 4 (1) ◽  
pp. 20
Author(s):  
Bak Barnaba Chol ◽  
Dr. Elizabeth Kalunda Nthambi ◽  
Dr. Joseph Kamau
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
South Sudan ◽  
Secondary Data ◽  
Primary Data ◽  
Local Market ◽  
Unique Contribution ◽  
Bank Stability ◽  
Asset Quality ◽  
Positive Effect

Purpose: The purpose of the study was to examine the influence of bank stability on the financial performance of commercial banks in South SudanMethodology: The study was guided by the CAMEL model metrics in measuring stability and its influence on the financial performance of commercial banks measured by ROA and ROE. The study was primarily grounded on the CAMEL model. The study further adopted the positivism philosophy which guided the research. The research employed a descriptive research design. The population for the study was 24 commercial banks in south Sudan from which the research targeted one senior manager. The research relied on a mixed methodology which encompassed both quantitative and qualitative data. Secondary data was collected for the period 2012-2017 from audited annual financial reports of individual banks and from the Central Bank of South Sudan reports while primary data was collected by use of a semi-structured questionnaire. The collected data into SPSS 23 for subsequent descriptive and inferential statistical analysis.Results: The correlation tests indicated a strong positive effect of asset quality on the financial performance of commercial banks ( r=0 .784); a strong positive effect of management efficiency (r= 0.758) and liquidity (r=0 .620).Unique contribution to theory, practice and policy: The study recommends that at the bare minimum the management of commercial banks should benchmark with industry experts on how to enhance their services and product offering to better their asset quality scores. Further the study recommends that banking institutions that have shied away from lending activities should reconsider the potential benefits that may accrue from undertaking lending activities. The study therefore recommends that banks should be encouraged to look beyond local market and strategically expand their operations to other geographical markets and sectors of the economy. Location of bank branches is strategically paramount if banks must maximize return on investment.

scholarly journals Assessment of CSR Practices in Nepalese Commercial Banks (A Comparative Study of RBBL, SCBL & NABIL)

2019 ◽  
Vol 22 (1) ◽  
pp. 11-20
Author(s):  
Kapil Khanal
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Commercial Banking ◽  
Annual Reports ◽  
Primary Data ◽  
Secondary Source ◽  
Secondary Sources ◽  
Questionnaire Method

 Objective: To assess the corporate social responsibility practices in Nepalese commercial banking sector. Methods and Materials: Primary and secondary sources of data were used in the study. The primary data were collected through direct questionnaire method from 60 employees of sampled commercial banks. The secondary source was through journals, textbooks and annual reports of Nepal Rastra Bank. SPSS and Microsoft excel were used to analyze the collected data. The value of Cronbach’s Alpha (α) of overall questionnaire is 0.92, which suggests the reliability of primary data. Descriptive and explorative research designs were used to analyze the primary and secondary data. Results and Conclusion: Responses from all the respondents of commercial banks regarding CSR and Non-Financial Performance clearly imply that CSR has an influence on the Non-Financial Performance. In terms of ‘R2’, CSR impacts both Brand Image and Brand Awareness (i.e. 0.987). This clearly indicates that more than 98.7% variance of both non-financial performances has been explained by CSR. In terms of ‘R2’, CSR impacts less in financial performance (i.e. 0.149). This clearly indicates that only than 14.9% variance of financial performance has been explained by CSR.

scholarly journals ELECTRONIC BANKING ADOPTION AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA, NAIROBI CITY COUNTY

2019 ◽  
Vol 4 (2) ◽  
pp. 19
Author(s):  
Priscah Jepchumba ◽  
Dr.Eddie Simiyu
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Secondary Data ◽  
Target Population ◽  
Primary Data ◽  
Unique Contribution ◽  
Electronic Banking ◽  
Descriptive Research ◽  
General Managers ◽  
Positive Effect

ELECTRONIC BANKING ADOPTION AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA, NAIROBI CITY COUNTY   1*Priscah Jepchumba 1Post Graduate Student: Kenyatta University *Corresponding Author’s Email: [email protected] 2 Dr.Eddie Simiyu Lecturer: Kenyatta University   Abstract Purpose: This research was done to establish how e- banking adoption has improved the financial performance of commercial banks in Kenya. Methods: The study used descriptive research design and structured questionnaires to collect data.The target population was all the 41 commercial banks in Nairobi. The sampling design was census where general managers and credit managers were targeted in Nairobi headquarters. The source of data was primary and secondary data; Primary data was collected from source through questionnaires while secondary data was sourced from annual central bank reports, bank financial statements as well as periodical journals and reports. Results: The findings of the study has indicated that most of the respondents had served the banking industry for a period of at least five years and education level of at least a college diploma.  The study also rejected all the null hypotheses and concluded that electronic banking has positive effect on financial performance of commercial banks.  The study has contributed to knowledge through provision of scholarly literature on electronic banking and financial performance of commercial banks in Kenya. Unique Contribution to Theory, Practice and Policy: The study’s recommendation to management is to implement strategies which: increase Speed in Electronic Services, increase investments in Electronic banking,  promote training programs to employees and adopt suitable techniques to reduce  threats to e-banking.  The study’s recommendation is that a similar research should be conducted with a moderating or mediating variable in the same industry.

scholarly journals Credit Information Sharing Practices and Financial Performance of Commercial Banks in Kenya

2019 ◽  
Vol 3 (VI) ◽  
pp. 67-82
Author(s):  
Felix Ouma Odhiambo ◽  
Fredrick Ndede
Keyword(s):  
Financial Performance ◽  
Information Sharing ◽  
Data Sharing ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Secondary Data ◽  
Target Population ◽  
Primary Data ◽  
Loan Default

The banking sector in Kenya suffered increased non-performing credits which prompted collapse of certain banks with an upsurge of loan defaulters. This was mainly attributed to the continued information asymmetry in the industry because of absence of a credit data sharing component. Commercial banks in Kenya have continued to encounter a number of challenges in obtaining information on customers’ payment history that helps guide on determining their ability to access and re-pay loan advancements. This has made more commercial banks to subscribe to credit reference bureaus since its establishment in 2008. As a result, commercial banks in Kenya have been experiencing high rates of Non-Performing Loans advanced to customers. The general objective of the study was to determine the effect of credit information sharing practices on financial performance of commercial bank in Kenya. The study specific objectives were to determine the effect of information accuracy, volume of lending and customer credit reports on financial performance of commercial bank in Kenya. The study was anchored by adverse selection theory, moral hazard theory and asymmetry theory. The researcher used a descriptive research design. The target population was five banks within Nairobi County including KCB, Equity Bank, Family Bank, Cooperative Bank and Barclays Bank. Primary data was collected using questionnaires and secondary data using financial statements of the commercial banks performance for the past 5 years. Data was analysed using descriptive statistics and inferential statistics. The study found that information accuracy, volume of lending and customer credit reports were positively and significantly related to the financial performance of the commercial banks. The study concludes that information accuracy increases the banks ' understanding of the applicants’ features and allows a more precise forecast of their probabilities of repayment, it decreases the information rents that banks could otherwise obtain from their clients and it can function as a borrower discipline tool. Lending volume enhances business banks ' enhanced operations, which in turn leads to banks’ enhanced economic results. Sharing of credit information has made commercial banks grant more loans on the basis of their reputation to deserving clients, thereby improving their profitability. When extensive consumer credit history information are easily accessible, it considerably decreases the cost of entering loan markets for fresh lenders, enhances competition and lowers credit rates. The research recommends that for enhanced results, all financial institutions in Kenya need to protect the precision of their platforms for data sharing. Regular site visits should offer credibility to the precision of the borrowers’ data. The data supplied by CRB should be used efficiently by commercial banks to lend to prospective borrowers. Only borrowers with a strong history of credit should be permitted access to the loans. The research also proposes that Kenya's commercial banks should base credit awards on the borrowers’ reputational assets, ensuring that the loan default rate is small, thus enhancing commercial bank performance.

scholarly journals A Comparative Study of Merger Effect on Financial Performance of Banking and Financial Institutions in Nepal

2018 ◽  
Vol 2 (1-2) ◽  
pp. 47
Author(s):  
Magina Shrestha ◽  
Ram Kumar Thapa ◽  
Ram Kumar Phuyal
Keyword(s):  
Social Sciences ◽  
Financial Performance ◽  
Financial Market ◽  
Performance Measures ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Comparison Method ◽  
Primary Data ◽  
Loan Quality ◽  
The Right

<p>Merger and Acquisition is relatively new reorganization practice undertaken to strengthen the BFIs in the Nepalese financial market. This study makes an attempt to analyze the financial performance of merged banking and financial institutions relative to their pre-merger performance, and assess the perception of the stakeholders towards merger. Six banks and financial institutions are considered as sample to undertake this study along with 120 respondents for secondary and primary data respectively. The financial ratios comparison method along with t-test of changes in performance measures has been used. This study found that merger impacts performance positively when larger and stable parties such as commercial banks act as bidders as opposed to the merger between smaller BFIs mainly other than commercial banks as bidder. The loan quality significantly deteriorates after merger in most of the cases and profitability measured in terms of ROA and ROE is adversely affected in most of the cases after the merger. Therefore, the merger should not be considered as the definite solutions to overcome the challenges faced in the market; enough evaluation is needed to select the right partners before executing the merger.</p><p>Journal of Business and Social Sciences Research, Vol. 2, No. 1 &amp; 2, pp. 47-68</p>

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.

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