Effect of Cash Reserves on Performance of Commercial Banks in Kenya: A Comparative Study between National Bank and Equity Bank Kenya Limited
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2019, Vol 8, Issue 9
Abstract
Banks optimize their liquidity risk by assuming the externalities posed by their choices on the overall risk of the financial system. The banking sector in Kenya has experienced liquidity challenges ranging from funding to market risks. The purpose of this study was to assess the effect of cash reserves on performance of commercial banks in Kenya. The study found that cash reserves had a strong negative correlation with return on equity giving a significant negative relationship with performance of Equity bank. The study recommended that banks should minimize cash reserves and instead invest this money in productive investments, diversify their sources of funding, diversify their investments of these funds.
Authors and Affiliations
Aloys Jared Oganda, Vitalis Abuga Mogwambo, Simeyo Otieno
Keywords
Related Articles
- EP ID EP567127
- DOI 10.6007/IJARBSS/v8-i9/4648
- Views 53
- Downloads 0
The Effect of Organizational Competencies on Organizational Competitive Advantage of the Banking Sector in Kenya
The purpose of the study was to investigate the effect of organizational competencies on organizational competitive advantage of the banking sector in Kenya. The specific objective of the study was to; determine the effe...
Philanthropic Corporate Social Responsibility: A Case Study
CSR is a popular concept practiced by many companies in the world. The ambiguity of CSR concepts and philanthropy out of the CSR concept has resulted in different implementations for each company. Case studies were selec...
Improving Teaching and Learning through Integration of Local Knowledge: A Case Study on Biodiversity Related Subjects
Biodiversity is one of the critical themes embedded within the national curriculum parallel with the National Biodiversity Policy. In the educational system, the binomial nomenclature is used in classifying the living or...
Predictors of Academic Achievement in Online Peer Learning among Undergraduate Students in a Malaysian Public University
An online peer learning through social media tools such as Facebook, Twitter, YouTube and Instagram has been networking interrelated undergraduates as social groups in higher learning institutions. In that respect, it ha...
Audit Committee Effectiveness of Financial Reporting Quality in Listed companies in Nigeria Stock Exchange
The paper examines the impact of audit committee on financial reporting quality in listed firms in Nigeria Stock Exchange. The paper uses the conceptual approach on archival data in the form of annual report of listed co...