Cognizant of the recent revolution in financial technology (FinTech), this paper explores the effect of FinTech development on bank risk-taking behavior in Kenya over the period 2008 to 2021. The study first develops a FinTech index using text mining technology and then relates this index to...

This paper examines the effect of board gender diversity on bank risk. The empirical analysis is conducted using 21 sample Kenyan commercial banks during the period 2010-2022 in a panel regression framework. Two key results are documented: first, that the share of women in Kenyan bank boards is...

This main objective of this paper is to quantify the credit gaps that possibly arose following the introduction of interest rate caps in September 2016 in Kenya. To achieve this objective, we employ two approaches. First, we use a statistical procedure - the HP filter to extract the historical...

This paper examines the impact of bank merger and acquisitions (M&As) on lending behavior by commercial banks. We employ the dataset of 31 sample Kenyan commercial banks over the period 2003 to 2015. Further we employ panel data models as well as difference-in-differences (DID) to explain the...

This paper uses annual data from Kenyan banks over the 2010-2020 period to empirically analyze the link between diversification (non-interest income) and bank performance. Using dynamic panel regressions, the study finds that banks which diversify (functionally) their sources of revenues tend to...

Purpose: This paper aims to establish the effect of bank regulations on financial stability in Kenya. Specifically, the study seeks to uncover the effect of micro and macro prudential regulations on financial stability and their trade-offs or complementarities. Design/methodology/approach:...

Microfinance competition has been transformed over the past two decades by forces such as regulation, increased commercialization, technological changes and competition from the formal banking sector. These developments have implications on Microfinance institutions (MFIs) profitability. This...

Since the seminal work by Modigliani and Miller in (1958) and the subsequent revision of their initial position (1963), several studies have shown that capital structure influences performance of corporate entities. Although the empirical evidence remains mixed and contestable, microfinance...