ISSN: 2222-6990
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The purpose of this study was to examine the effect of regulatory framework in commercial banks, in Kenyan context. The study evaluated commercial banks performance using both financial and non-financial performance measurers. The financial measurers for this study comprised return on equity (ROE), while non-financial measures were customer satisfaction, learning and growth, and internal processes. The study was anchored on resource-based view, dynamic capabilities and stakeholder theories. The targeted population for the study was 40 commercial banks and the sample size was 181 respondents selected proportionately through stratified sampling procedure. Data collection instruments comprised closed and open -ended questionnaires and online document review. This study used primary and secondary data, primary data was obtained from Kenya commercial banks head offices, while secondary data, for the year 2016 – 2018, was acquired from the annual publications by the central bank of Kenya. Data analysis was done using descriptive statistics and simple regression analysis. Findings of study indicate that regulatory framework has a statistically significance on the performance of commercial banks in Kenya but not to a large extent. Moreover, both financial and non-financial measures of performance are relevant in the banking sector and growth of Kenyan economy. The study recommends that regulators should not enforce restrictions on the expense of adverse effect on the investors.
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In-Text Citation: (Kori, Muathe, & Maina, 2020)
To Cite this Article: Kori, B. W., Muathe, S. M. A., & Maina, S. M. (2020). Banks Regulation and Performance in the Context of Commercial Banks in Kenya. International Journal of Academic Research in Business and Social Sciences. 10(10), 65-79.
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