• Login
    View Item 
    •   SU+ Home
    • Research and Publications
    • Strathmore Institute of Mathematical Sciences (SIMs)
    • SIMs Projects, Theses and Dissertations
    • BBSE Research Projects
    • BBSE Research projects (2015)
    • View Item
    •   SU+ Home
    • Research and Publications
    • Strathmore Institute of Mathematical Sciences (SIMs)
    • SIMs Projects, Theses and Dissertations
    • BBSE Research Projects
    • BBSE Research projects (2015)
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Effects of equity capital changes on the lending rates of Kenyan banks

    Thumbnail
    View/Open
    Full Text (9.593Mb)
    Date
    2015
    Author
    Adoli, Emmanuel
    Metadata
    Show full item record
    Abstract
    This study examines the consequences of imposing higher capital requirements on banks, and more specifically their long-term effects on bank lending rates. The analysis involves econometric estimations of the determinants of lending rates based on a parameterized model of the Kenyan banking industry. It was found that the equity capital ratio has a positive and significant impact on the interest rates charged on bank loans. Raising the equity capital ratio by one percentage point leads to an increase in bank lending rates by about 5 basis points. These results suggest that higher equity capital requirements increase the average cost of funds for Kenyan banks, and this cost is passed on to bank customers through increased lending rates .
    URI
    http://hdl.handle.net/11071/5106
    Collections
    • BBSE Research projects (2015) [45]

    DSpace software copyright © 2002-2016  DuraSpace
    Contact Us | Send Feedback
    Theme by 
    Atmire NV
     

     

    Browse

    All of SU+Communities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    Login

    DSpace software copyright © 2002-2016  DuraSpace
    Contact Us | Send Feedback
    Theme by 
    Atmire NV