EFFECTS OF CAPITAL ADEQUACY GUIDELINES ON FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA

DENNIS MWITI KIRIMI, MOSES KITHINJI, JAMES GATAUWA, PhD

Abstract


This study investigated the effect of liquidity management guidelines on financial performance of commercial banks in Kenya. The study used descriptive survey research design. The researcher targeted all 42 commercial banks in and purposively selecting three senior management staff from every bank to arrive at a sample size of 130 respondents that participated in the study. The study collected both primary and secondary data. Structured questionnaires were used to collect primary data. Data collected was quantitative in nature and it was analyzed by factor and descriptive analysis. The descriptive statistical tools such as SPSS version 26 was used to describe the data and determine the extent to which the growth strategies were used and the level of growth achieved. The findings were presented using tables and charts. Tables were used to summarize responses for further analysis and facilitate comparison. The study showed that CBK prudential regulations on capital adequacy affects the banks performance on total deposits. 

Key Words: Capital Adequacy, Central Bank of Kenya Guidelines


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DOI: http://dx.doi.org/10.61426/sjbcm.v10i3.2690

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