Record Details

RELATIONSHIP BETWEEN CAPPED LENDING RATES AND NON-PERFORMING LOANS ON LISTED COMMERCIAL BANKS IN KENYA

Studies and Scientific Researchs. Economics Edition

View Archive Info
 
 
Field Value
 
Title RELATIONSHIP BETWEEN CAPPED LENDING RATES AND NON-PERFORMING LOANS ON LISTED COMMERCIAL BANKS IN KENYA
 
Creator Thuita, Gladys Wanjiku
 
Subject non-performing loans; capped lending rate, banking sector; correlations; Central Bank of Kenya
E13
 
Description The study sought to determine the relationship between capped lending rate and non-performing loans among the listed commercial banks in Kenya. The data for the study was collected from the period 2013 to 2017 from five listed commercial banks in Kenya. The research tested the null hypotheses that capping the lending rate has no significant relationship on non-performing loans of the sampled banks. The study adopted the quantitative research design to test the null hypotheses. The Pearson correlations results indicated that capped lending rate has no significant relationship on the non-performing loans. In conclusion the negative correlation can be attributed to fact that borrowers continue to repay the old loans (acquired before capping) the same scheduled payments before capping, reducing the duration of the loan and not amount payable on monthly basis. The recommendation is for such studies to be conducted on continuous basis for the next five years and advice the government on whether to drop or retain the cap for purpose of sustainable economic development in Kenya.  
 
Publisher Vasile Alecsandri University of Bacau
 
Contributor —
 
Date 2018-07-31
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
application/pdf
 
Identifier http://sceco.ub.ro/index.php/SCECO/article/view/405
10.29358/sceco.v0i0.405
 
Source STUDIES AND SCIENTIFIC RESEARCHES. ECONOMICS EDITION; No 27 (2018)
STUDII SI CERCETARI STIINTIFICE. SERIA STIINTE ECONOMICE; No 27 (2018)
2344-1321
2066-561X
 
Language eng
 
Relation http://sceco.ub.ro/index.php/SCECO/article/view/405/pdf
http://sceco.ub.ro/index.php/SCECO/article/view/405/pdf_1
 
Rights Copyright (c) 2018 STUDIES AND SCIENTIFIC RESEARCHES. ECONOMICS EDITION