Real Estate loans and Financial performance of Commercial Banks in Kenya
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Date
2018
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Economics, Commerce & Management
Abstract
The main purpose of the study was to determine the influence of real estate loans on financial
performance of commercial banks in Kenya and a corresponding hypothesis was formulated
and tested. A census of 42 fully operational commercial banks in Kenya was done for a period
of ten years from 2006-2015 because of increased loan portfolio, using across-sectional survey
design. A questionnaire was used to collect primary data from one key person in the
finance/credit department of each bank. Secondary data was collected from audited financial
statements and other relevant financial sources using data analysis sheet. Both descriptive and
inferential statistics were used. Statistical package for social sciences (SPSS) and STATA
version 14 were used to analyze data. Research findings established that real estate loans
influence the financial performance of commercial banks. The study findings are supported by
the Utilization of modern portfolio theory.
Description
Keywords
Real Estate Loans, Financial Performance, Commercial Banks, Modern Portfolio Theory, Banking
Citation
Onchomba, M. S., Njeru, A. & Memba, F. (2018). Real Estate loans and Financial performance of Commercial Banks in Kenya: International Journal of Economics, Commerce & Management,Uk. Vol V1 issue 8: ISSN 2348 0386