scholarly journals Relationship between Asset-backed Securities and Financial Performance of Listed Commercial Banks in Kenya

2020 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Stephen Ndungu ◽  
Paul Gichohi ◽  
Fredrick Mutea
Keyword(s):  
Standard Deviation ◽  
Financial Performance ◽  
Commercial Banks ◽  
Target Population ◽  
Study Data ◽  
Validity And Reliability ◽  
Policy And Practice ◽  
Asset Backed Securities ◽  
Risk Managers ◽  
The Relationship

Purpose: The purpose of this study was to establish the relationship between asset-backed securities and financial performance of listed commercial banks in Kenya.Methodology: Descriptive survey research design was used. The target population was the listed commercial banks that are in Kenya. Census technique was applied in the study. Data was collected from 11 listed commercial banks in Kenya using closed-ended questionnaire. The required information was provided by all risk managers, finance managers, compliance managers and operations managers. To ensure validity and reliability, questionnaires were pre-tested with non-listed commercial banks in Kenya. The coded data was analyzed quantitatively where mean, percentage and standard deviation were computed while linear and multiple regression analysis were used to test the hypothesis, and information presented using Tables.Results: The findings showed that many banks either generally agreed with the statements on the questionnaires. The influence of asset-based securities on financial performance was at a mean 3.8227 and standard deviation of 1.38128. The adjusted R square value of 0.824 implied that asset backed securities predicted 82.4% of the variability in the financial performance. Therefore, asset backed securities could be used to predict financial performance.Unique contribution to theory, policy and practice: This study contributed the outcome of the relationship between asset-backed securities and financial performance of listed commercial banks in Kenya. Banks will be able to use securitization to free up with-held bank’s capital in loans hence re-investing the capital in other ventures leading to improved financial performance. Commercial banks are recommended to issue more asset backed securities and there should be policies developed to guide commercial banks on asset backed securities This is because asset backed securities can partake in improving the capital structure of business banks in Kenya, thus, improving benefit and avoiding the base capital guideline edge.

Influence of Islamic Auto Financing Instruments on Financial Performance of Commercial Banks in Isiolo County Kenya

2021 ◽  
Vol 6 (1) ◽  
pp. 70-85
Author(s):  
Abdi Huka Halake ◽  
Dr. Nancy Rintari ◽  
Fredrick Mutea
Keyword(s):  
Financial Performance ◽  
Customer Service ◽  
Commercial Banks ◽  
Secondary Data ◽  
Unique Contribution ◽  
Validity And Reliability ◽  
Policy And Practice ◽  
Loan Officer ◽  
Loan Officers ◽  
Isiolo County

Purpose: The purpose of the study was to explore the influence of Islamic auto financing instruments on financial performance of commercial banks in Isiolo County Kenya. Methodology: This study used descriptive research design. The respondents were customer service officers and loan officers in the ten commercial banks in Isiolo County. They were be selected using census method. Data collection was done using closed-ended questionnaires and secondary data collected through analysis of report from 2017 to 2020. To ensure validity and reliability, pre-testing of questionnaires was done at Kenya Commercial Bank in Meru town. Coded data in SPSS 24.0 computer program analyzed quantitative and qualitative data using the descriptive statistics such as mean, percentage and standard deviation. Multiple regression was used to test hypothesis of the study. Tables, graphs and detailed explanations were used to present the final results of the study. Results: Options had a statistically significant relationship with financial performance. The respondents agreed that the lending terms of Islamic automobile financing have attracted diverse clients (mean of 4.78). However, in comparison with other statements, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans (mean of 3.83). The R value was 0.862 and R-square of 0.743. This indicated that Islamic auto financing instruments’ level of contribution towards financial performance was 74.3%. The Durbin- Watson value was 1.969. This value lied between 0 and 2 hence indicating that there was a positive correlation between auto financing instruments and financial performance. The significance value was 0.000 which was below 0.05 hence Islamic Auto financing instruments had a significant influence of financial performance. In addition, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans. This proved that the confidence that clients had on auto financing, was not purely on the nature and process of administration of the financing but also due to reliability. Unique contribution to theory, policy and practice: The study recommends that auto financing should be provided reliably by ensuring all client concerned are amicably handled by the banking staff. The various car loan officer should be trained on good customer service to as to ensure they sell well their products without necessarily losing new clients. The bank management should also diversify auto financing to cater for all categories of vehicles for expansion of their client base.

THE RELATIONSHIP BETWEEN OPTIONS DERIVATIVES AND FINANCIAL PERFORMANCE OF SELECTED LISTED COMMERCIAL BANKS IN KENYA

2021 ◽  
Vol 6 (1) ◽  
pp. 54-69
Author(s):  
Philipino Muthine ◽  
Fredrick Mutea ◽  
Ruth Kanyaru
Keyword(s):  
Standard Deviation ◽  
Financial Performance ◽  
Commercial Banks ◽  
Sampling Technique ◽  
P Value ◽  
Unique Contribution ◽  
Linear Regression Models ◽  
Strike Price ◽  
Expiry Date ◽  
The Relationship

Purpose: The purpose of the study was to ascertain the relationship between options derivatives and financial performance of selected listed commercial banks in Kenya. Methodology: Descriptive research design was used when collecting data using closed ended questionnaires from the selected 11 listed commercial banks in Kenya. The target population included 156 respondents who were 25 risk managers, 53 operations managers, 33 credit managers and 45 marketing managers to participate in the study. The study selected all of the 156 respondents through census sampling technique. Pre-test questionnaires was sent to six respondents who were junior officers in risk, credit, operations and marketing departments of non-listed commercial banks in Meru Kenya. The collected data was then coded and analyzed quantitatively using the descriptive statistics such as mean, percentage and standard deviation while inferential statisticsperson correlation analysis were used. Linear regression models were also used. Further on, the tables, graphs were used when indicating the analysis results. Results: Options had a statistically significant relationship with financial performance. Most respondents agreed that there were clear procedures used to solve options price discrepancies. It had a mean of 4.79 and standard deviation of 0.62. However, most respondents disagreed that options derivatives market activities were improving in the banks. It had a mean of 3.85 and standard deviation of 1.05. The results further indicated that options had an R value of .793a and Durbin Watson value of 1.292 showing there was a strong correlation between the two variables, while the R-square was 0.629. This implied that options as a paradigm predicted 62.9% of financial performance variable in this study.Options also had a significant p-value of 0.018. Unique contribution to theory, policy and practice: The results indicated that commercial banks were really incurring more costs as compared to profits generated due to errors made by the employees when engaging in various options derivatives markets. In addition, when financial derivatives owners were given the rights and not forced to purchase or vend an underlying asset at a strike price or exercise price, at or earlier than the expiry date of the options, there was an above average purchase. The study recommends that the bank staff should explain full information on the options derivatives so that when a client is making the purchase, they are well knowledgeable. This knowledge should begin from the procedures followed when making a purchase, sale or transfer of option derivatives in the securities exchange market. In addition, any costs associated with the options derivatives should be fully communicated to clients priorly to avoid premature termination of options derivatives contracts. Further on, there should be more training on banks staffs by the bank management so that they are equipped with knowledge on the specifics of options derivatives trading. By doing so, the chances of errors would be minimized.

scholarly journals Bank Size and Financial Risk Exposure on Financial Performance of Commercial Banks in Kenya

2019 ◽  
Vol 10 (6) ◽  
pp. 250
Author(s):  
Konya M. Nelly ◽  
Jagongo Ambrose ◽  
Kosimbei George
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Deposit Insurance ◽  
Financial Risk ◽  
Economies Of Scale ◽  
Study Data ◽  
Risk Exposure ◽  
Economic Activities ◽  
Quantitative And Qualitative Research ◽  
The Relationship

The performance of banks in Kenya has become a major concern for economics and policy makers due to the role of banks remaining central in financing economic activities. The study sought to establish the effect of bank size and financial risk exposure on financial performance of commercial banks in Kenya. The descriptive research design and a positivist approach were adopted. The Berger and Hannan approach was used to establish the relationship between bank size, financial risk exposure and the moderating effect of macroeconomic variable on the financial performance of commercial banks in Kenya. Various diagnostic tests were carried out and the study data structure was panel hence Stata was employed to determine the relationship between the variables. In conclusion, banks need to grow bank sizes where they enjoy both economies of scale and scope. The Kenyan Treasury should design policies that would increase the capital size, liquidity requirements and deposit insurance premiums; this may assist in enlarging the size of banks to a level where they are fairly equal with none having relative market power to drive the market. Areas of further research may include but not limited to considering other variables besides the financial risk exposure and bank size in determining their effect on the financial performance of commercial banks in Kenya. The research may as well be done in the East African or African context. The further studies should seek to leverage on mixed research approaches that utilize both quantitative and qualitative research.

PROCUREMENT PROCESS AND SERVICE DELIVERY IN THE UNITED NATIONS ORGANIZATION STABILIZATION MISSION IN THE DEMOCRATIC REPUBLIC OF CONGO (MONUSCO) ENTEBBE SUPPORT BASE

2017 ◽  
Vol 1 (2) ◽  
pp. 82
Author(s):  
Gatta Ouyabaka Marius
Keyword(s):  
Service Delivery ◽  
United Nations ◽  
Democratic Republic Of Congo ◽  
Target Population ◽  
Study Data ◽  
Descriptive Case Study ◽  
Procurement Process ◽  
Technical Specifications ◽  
The Relationship

Purpose: The purpose of this study was to examine the relationship between procurement process and service delivery in MONUSCO Entebbe Support BaseMethodology: The study employed a descriptive case study design. The target population comprised of 261 employees of MONUSCO Entebbe Support Base holding international, United Nations Volunteers (UNV) and National contracts. Random and purposive sampling techniques were specifically used to select samples for this study. Data was collected using questionnaires and interview guides. The quantitative data collected was further analysed using SPSS for descriptive and inferential statistics while the qualitative data was analysed using content analysis.Findings: The study findings showed that procurement process contributed to effective and efficient service delivery in MONUSCO. However, the found relationship between procurement process and service delivery to be very weak. It was found that contracts were awarded to suppliers who met products/materials technical specifications which ensured clear meeting of product standards and service delivery in all MONUSCO user departments. Contracts were awarded to vendors who offer lower price which implied that the bidder with the lowest price is always considered for contract award in MONUSCO ESB. The study found that some vendors did not meet all the terms of contracts as agreed at the time of contract award at the MONUSCO ESB and that to some extent the organization had not taken full appropriate correction measures against non performing vendors. This has to some extent affected the service delivery levels of MONUSCO Entebbe Support Base. It was also found that to a larger extent most vendors had a delivery schedule as per the user department requirements. This meant that the vendors draw and share the supply delivery schedule with the user departments in MONUSCO ESB.Unique contribution to theory, practice and policy: The study recommends that the management needs to ensure that the procurement activities are accomplished in line with the outcome measures. MONUSCO Entebbe Support Base should focus on implementing strict procurement practices that must be followed with contract value thresholds dictating the procurement practices to be adopted by all MONUSCO sections.

scholarly journals Analyzing Effect of Alternative Banking Channels on Financial Performance of Burundi Commercial Banks: Evidence from Kenya Commercial Bank in Burundi

2020 ◽  
pp. 1-11
Author(s):  
Nkeshimana Carlos ◽  
Martin Onsiro Ronald
Keyword(s):  
Financial Performance ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Strong Relationship ◽  
Target Population ◽  
Internet Banking ◽  
Sample Population ◽  
Mobile Banking ◽  
Significance Level ◽  
Descriptive Survey

The study sought to assess the effect of channels of alternative banking on financial performance of Kenya Commercial Banks in Burundi. The specific objectives were: to examine the effect of mobile banking on financial performance of Kenya Commercial Bank, Burundi; to assess the effect of internet banking on financial performance of Kenya Commercial Bank, Burundi; to examine the effect of auto teller machines on financial performance of Kenya Commercial Bank, Burundi; and to assess the effect of agency banking on financial performance of Kenya Commercial Bank, Burundi. The study employed descriptive survey research design as well as correlation research designs. Based on information obtained from KCB, the target population for the study was 37 employees and 114 customers. The researcher used Slovin’s formula to define the sample population n = 60 (14 employees and 46 customers). A questionnaire was used for data collection. The data was qualitatively and quantitatively analyzed. The results of the study showed that there was a strong relationship between the different banking distribution channels and the financial performance of KCB Bank. It also found that 14.1% of the total variance in financial performance of KCB Bank could be attributed to alternative banking channels. The remaining 85.9% of the variance in financial performance could be attributed to other determinants of financial performance that were not the focus of this study. ANOVA statistics revealed that the regression model was ideal since it had a significance level of 0.0%. The study also found that mobile banking, Automated Teller Machine, agencies and Internet banking affected the performance of commercial banks in a positive and statistically significant way. The study recommends that Burundian commercial bank sought to invest heavily in alternative banking as this will lead to an improvement in banks' financial performance. The study also recommended that KCB should examine the competitive environment and determine the means to achieve the goal of interoperability, and continue to make electronic banking products available, offering various types of bank cards adapted to the needs of each client.

scholarly journals Investigating the Market Interest Rate on Commercial Banks Financial Performance in Bangladesh

2021 ◽  
Vol 5 (1) ◽  
pp. 3-12
Author(s):  
Debashis Saha ◽  
Prodip Chandra Bishwas ◽  
Md. Mustofa Ahmed Sumon
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Commercial Banks ◽  
Financial Stability ◽  
Banking Sector ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Market Interest Rate ◽  
The Relationship

The banking sector is the most vital partner of development for countries' economies. It has a remarkable contribution to the country's Gross Domestic Product. This study investigates the relationship between the market interest rate and commercial banks' financial performance. As Bangladesh's banking industry is growing, it is vital to maintain a more robust profitability level for its financial stability and soundness. Banks have some determinants that have a significant impact on their performance. The convenience sampling method is used to select the targeted sample. The study includes the time series data of eight years of fifteen commercial banks listed on the Dhaka Stock Exchange in Bangladesh. Multiple variable linear regression and correlation analysis are performed to examine the relationship of market interest rate with banks' profitability with statistical software, IBM SPSS version 25, and Microsoft excel. The study explored that the market interest rate has a significant positive impact on banks' profitability. It is also found that the lending rate and interest rate spread are significantly correlated with the banks' financial performance. The study recommended that banks make their investment to make a higher profit margin to enhance their management and financial soundness efficiency.

Exploration Of Staff Incentives And Strategy Implementation In Commercial Banks In Kenya

2020 ◽  
Vol 7 (9) ◽  
pp. 752-765
Author(s):  
Nathan Chizotera Mkandawire ◽  
Thomas Anyanje Senaji ◽  
Eunice Karegi Kirimi
Keyword(s):  
Commercial Banks ◽  
Target Population ◽  
Job Security ◽  
Strategy Implementation ◽  
Strategy Management ◽  
Financial Inclusion ◽  
Empirical Literature ◽  
Successful Implementation ◽  
Bank Employees ◽  
The Relationship

Though elegant strategies are formulated by organisations, their successful implementation continues to be elusive. Empirical literature suggests that failure of strategy at implementation state is due to factors such as management competence, leadership and resources. However, little attention has been directed to the relationship between incentives, specifically staff incentives such as pay, oversight, meaningfulness of work, employee growth as well as job security and strategy implementation. In this this exploratory study, we examined the perception of staff incentives and their relationship with implementation of financial inclusion strategy in commercial banks in Kenya using a quantitative survey of 42 respondents drawn from commercial banks in Kenya. Financial inclusion strategies are defined as roadmaps of agreed actions at the national or regional level, which stakeholders chart and pursue to accomplish financial inclusion objectives. The study’s target population was operational managers selected from each bank randomly. We found that staff incentives provided to bank employees ranged from being unsatisfactory to moderately satisfactory and that financial inclusion strategy implementation was also moderately successful in the banks. It was also found that oversight and job security had a linear relationship with financial inclusion strategy implementation (oversight: r = 0.336, p = 0.029; job security: r = 0.685, p < 0.001). Further, the pay negatively affected the probability for successful implementation of financial inclusion strategy – it reduces the likelihood by 50% (exp (B) = 0.53) while job security increased the chances for successful implementation of financial inclusion strategy by a factor of 2 (exp (B) =1.883). In conclusion, based on these preliminary findings banks should consider and improve their pay because it was found to negatively affect the likelihood of successful implementation of financial inclusion strategy. Secondly, since job security was found to increase the probability of successful implementation of financial inclusion strategy management of banks should strive to ensure job security to enable them implement the financial inclusion strategy hence improve the financial performance of the banks. Consequently, the managers should improve on the incentives that were rated as unsatisfactory or low by the employees

scholarly journals PENGARUH PEMBIAYAAN MUSYARAKAH, MARKET SHARE DAN MODAL INTELEKTUAL TERHADAP KINERJA KEUANGAN PADA BANK UMUM SYARIAH DI INDONESIA

2020 ◽  
Vol 5 (3) ◽  
pp. 344-361
Author(s):  
Ayu Yunita ◽  
Meutia Fitri
Keyword(s):  
Financial Performance ◽  
Market Share ◽  
Intellectual Capital ◽  
Commercial Banks ◽  
Sampling Method ◽  
Secondary Data ◽  
Target Population ◽  
Financing Market ◽  
Research Type ◽  
Research Show

The purpose of this research is to examine the influence of musyarakah financing, market share, and intellectual capital to financial performance on islamic commercial banks in Indonesia in 2013-2018. The research type used is verificative research by using Purposive sampling method. The target population of this research are 14 islamic commercial banks in Indonesia and the sample of the research are islamic commercial banks. The data used in this research are secondary data, which are gotten from for the book year ended December 31, 2013, 2014, 2015, 2016, 2017, and 2018. The result of this research show that musyarakah financing, market share, and intellectual capital silmutaneously influence to financial performance. Partially, musyarakah financing has influence to financial performance, market share has influence to financial performance, and intellectual capital has influence to financial performance.

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