The paper sought to explore the role of bank capital in mitigating credit risk and promoting financial stability. To achieve this, we constructed a Financial Soundness Index to evaluate financial stability conditions. A Panel Vector Auto Regression Model was employed using annual bank-level data...

The study sought to examine the effect interest rate risks on banking sector stability through disentangling the effect of interest rate risk on both fiscal and banking sector stability conditions in Kenya. We applied annual macroeconomic and bank-level data for the period 2001 - 2022 across 37...

The recent technological advancement and financial innovations, competition from nonbank financial institutions and Mobile Network Operators (MNOs), challenging operating environment in addition to regulatory changes continue to exert pressure for banks in Kenya to modify their business...

This paper seeks to evaluate efficiency and competition dynamics of the Kenyan banking sector for the period 2001-2017 using bank-level data for 37 commercial banks. To achieve this, the paper uses a three-step estimation approach; first, we apply non-parametric Data Envelopment Analysis (DEA)...

Easier access to credit has been emphasized to ease financial constraints that impede investments critical for improving earnings and alleviating poverty. This paper analyses the uptake of digital credit and its impact on household indebtedness in Kenya. The empirical results show that financial...

There has been a long standing debate on the effect of government domestic borrowing from commercial banks by increasing average lending rates, suggesting that increasing government spending financed by the banking sector crowds out private sector credit through price channel. However, empirical...

The implementation of a Single Customs Territory by East African Community countries is intended to ease the movement of goods across borders by cutting costs and time through harmonization and simplification of customs documents, removal of burdensome customs procedures, and automation of...

Illicit financial flows directly impact a country's ability to raise, retain, and mobilize its own resources to finance sustainable development. Against a backdrop of a weak public financial position attributed to capital flight, tax avoidance, and dependence on corporate income taxes,...

The paper analyzes the relationship between remittances and financial development using Kenyan quarterly data from 2006 to 2016. Five different indicators of financial development are used: credit to the private sector as a share of GDP, the number of mobile transactions, the value of these...

Although considerable research has focused on the determinants of credit to the private sector, the issue still remains controversial, particularly with respect to the role of foreign banks in emerging markets. This study sought to understand the factors that affect lending of commercial bank...