Financial liberalization and globalization have enhanced competition in the banking sector with profound implications for stability. Positively, competition has had obvious benefits including increased efficiencies, continuous financial innovations and accelerated financial inclusion. However,...

Literature has divergent views on the relationship between market structure and allocation of credit by banks. Using quarterly bank scope data from 23 banks operating in Kenya between 2006 and 2018, we find that, while an increase in competition may improve allocation of credit in the short run,...

This paper examines how macroeconomic shocks affect credit risk in the Kenyan banking sector. Using an autoregressive distributed lag (ARDL) model within a time-series framework, we establish the existence of both a short-run and long-run nexus between macroeconomic variables and bank-credit...

Financial liberalization and globalization have enhanced competition in the banking sector with profound implications for stability. Positively, competition has had obvious benefits including increased efficiencies, continuous financial innovations and accelerated financial inclusion. However,...

Literature has divergent views on the relationship between market structure and allocation of credit by banks. Using quarterly bank scope data from 23 banks operating in Kenya between 2006 and 2018, we find that, while an increase in competition may improve allocation of credit in the short run,...

Effective policies to stabilize macroeconomic conditions are essential for economic growth. In the context of this study, policymakers pursue these macroeconomic stability objectives by adjusting fiscal and monetary policy. The study used impulse response functions (IRFs) derived from vector...

This study examined the impact of the COVID-19 pandemic on bank lending across various sectors in Kenya. Using a multivariate Vector Autoregressive (VAR) model within a time series data framework, the study established the existence of both direct and indirect COVID induced shocks on credit...

Effective policies to stabilize macroeconomic conditions are essential for economic growth. In the context of this study, policymakers pursue these macroeconomic stability objectives by adjusting fiscal and monetary policy. The study used impulse response functions (IRFs) derived from vector...

This study examined the impact of the COVID-19 pandemic on bank lending across various sectors in Kenya. Using a multivariate Vector Autoregressive (VAR) model within a time series data framework, the study established the existence of both direct and indirect COVID induced shocks on credit...