MARATTO

article · European Journal of Business Management and Research

Effect of Interest Rate Spread on Performance of Commercial Banks in Kenya

20241 citationOpen accessUniversity of Nairobi

Abstract

The interest rate spread has, over a long time, generated a lot of attentiveness in the banking sector in Kenya. This has been due to the huge gap that prevailed between the deposit rate and the lending rate and its impact on the performance of the banking sector. Thus, the objective of the study is to determine the effect of interest rate spread on the performance of commercial banks in Kenya. A descriptive research design was employed, utilizing secondary data from 42 commercial banks in Kenya spanning from 2008 to 2018. A random effects model was used to assess the existence of the causal effect between the two variables. The findings revealed a positive and significant relationship between interest rate spread and the performance of the banks.

Research topics

  • Banking stability, regulation, efficiency
  • Islamic Finance and Banking Studies
  • Microfinance and Financial Inclusion

Read the original research

This page summarises published work. The authoritative version sits with the publisher.

DOI: 10.24018/ejbmr.2024.9.3.2286

Is something wrong with this record? Report it or request removal.

Discussion

Discuss this research

Have you built on this work, tried to replicate it, or seen it applied in practice? Share what you know. Verified researchers and MARATTO™ domain experts can open a discussion, and any member can reply. Contributions are reviewed before they appear.

No discussion yet. Open the first thread.