The Effect of Bank Specific Factors on Financial Performance of Commercial Banks in Kenya

Authors

  • Eric Gicharu Kamande South Eastern Kenya University
  • Evusa Zablon South Eastern Kenya University
  • Dr Jared Ariemba South Eastern Kenya University

Keywords:

Bank performance, Specific factors.

Abstract

The main goal of every banking institution is to operate profitably in order to maintain stability and sustainable growth. External and internal economic environments are viewed as critical drivers for bank performance. The main purpose of this study was to determine the effects of bank specific factors on the financial performance of commercial banks in Kenya for a period of 5 years, starting from the year 2011 to 2015. The dependent variable under investigation was return on assets (ROA). The independent variables were capital adequacy, asset quality, management efficiency, earnings ability and liquidity. The specific objectives of this research were to determine the effects of capital adequacy on the financial performance of commercial banks in Kenya, evaluate the effects of asset quality on the financial performance of commercial banks in Kenya, determine the impact of management efficiency on the financial performance of commercial banks in Kenya, determine the impact of earnings ability on the financial performance of commercial banks in Kenya and evaluate the effects of liquidity on the financial performance of commercial banks in Kenya. The choice of this five-year period was based on the explosive growth of the banking sector in the country and the availability of complete data for that period. The study concentrated on the bank specific factors that affect the banks

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Published

2016-12-17

How to Cite

Kamande, E. G., Zablon, E., & Ariemba, D. J. (2016). The Effect of Bank Specific Factors on Financial Performance of Commercial Banks in Kenya. International Journal of Sciences: Basic and Applied Research (IJSBAR), 30(5), 165–180. Retrieved from https://www.gssrr.org/index.php/JournalOfBasicAndApplied/article/view/6656

Issue

Vol. 30 No. 5 (2016)

Section

Articles

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