The Impact of covid-19 on the financial performance of commercial banks in Kenya
Date
2022
Authors
Omar, Abdallah Karar
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Banks are a critical sector in the economy of any given country, and it is therefore important to study various factors that may affect its performance. Some of these factors may be internal that is within banks, others may be external i.e., macroeconomic factors while others may be unprecedented a proper example is the covid-19 pandemic. Thus, the motive of this study was to assess the impact of covid-19 on the financial performance of commercial banks in Kenya. This research strived to give insights on the effect that the pandemic has posed to the banking sector. It is therefore important to point out the financial performance of banks as it helps banks in achieving it’s set objectives as well as its profit margins. The objectives used in this study include credit risk, interest rates and inflation, the effect of covid-19 upon these factors and the subsequent effect on the financial performance of commercial banks in Kenya. The study employed a descriptive research design with the eleven commercial banks listed in the Nairobi Stocks Exchange (NSE) as the target population. The study utilized the entire target population. The agency theory and the financial intermediation theory have been used to explain the theoretical framework. The validity of this study that is its quality and consistency was assured with the use of a diagnostic test testing all the 4 key principles: linearity, normality, homoscedasticity, and autocorrelation. This study employed secondary data collected from the Central Bank of Kenya (CBK) and financial statements of the commercial banks listed in the NSE. This study relied on regression and correlation analysis as well as descriptive statistics. Data was analyzed using SPSS package. Information from the analysis was presented in mean, standard deviation, charts, and tables. This study upholds its ethical standard by holding the data collected with utmost confidentiality and to be used solely for academic purposes.
Description
A Research Project Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Commerce at Strathmore University
Keywords
Commercial Banks--Kenya, Central Bank of Kenya