Skip to main navigation Skip to main content
info(at)avldigital.remove-this.de
Deutsch English
Narrow Search
Search narrowed by
Last searches

Results for *

Displaying results 1 to 4 of 4.

  1. Macroeconomic shocks and cedit risk in the Kenyan banking sector
    Author: Atiti, Faith; Kimani, Stephanie; Agung, Raphael
    Published: February 2022
    Publisher:  Kenya Bankers Association, Nairobi

    This paper examines how macroeconomic shocks affect credit risk in the Kenyan banking sector. Using an autoregressive distributed lag (ARDL) model within a time-series framework, we establish the existence of both a short-run and long-run nexus... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)
    Verlag (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 792
    Inter-library loan:
    No inter-library loan

     

    This paper examines how macroeconomic shocks affect credit risk in the Kenyan banking sector. Using an autoregressive distributed lag (ARDL) model within a time-series framework, we establish the existence of both a short-run and long-run nexus between macroeconomic variables and bank-credit risk. We establish a negative relationship between credit risk and GDP growth although not significant. We also find that the relationship between bank profitability and asset quality is negative in the short-run but positive in the long-run. The paper also documents a positive short-run relation between asset quality and private sector credit growth, which turns negative in the longrun. Furthermore, the bank asset quality-capital nexus is positive in the short-run but turns negative in the long-run. The concave relationship suggest that NPLs will rise with increases in capital to a certain threshold (moral hazard effect), after which more capital build ups decrease NPLs (disciplinary or regulatory effect). Finally, the speed of adjustment coefficient is negative and statistically significant. A shock in any period is self-correcting at a rate of 24.96%, implying that the long-run market equilibrium is restored within a period of four quarters.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/249558
    Series: KBA Centre for Research on Financial Markets and Policy working paper series ; WPS, 22, 04 = 58
    Subjects: Bank; Schock; Kreditrisiko; Kenia
    Scope: 1 Online-Ressource (circa 29 Seiten), Illustrationen
  2. Competition and banking sector stability in Kenya
    Author: Atiti, Faith; Agung, Raphael; Kimani, Stephanie
    Published: May 2020
    Publisher:  Kenya Bankers Association, Nairobi

    Financial liberalization and globalization have enhanced competition in the banking sector with profound implications for stability. Positively, competition has had obvious benefits including increased efficiencies, continuous financial innovations... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 792
    Inter-library loan:
    No inter-library loan

     

    Financial liberalization and globalization have enhanced competition in the banking sector with profound implications for stability. Positively, competition has had obvious benefits including increased efficiencies, continuous financial innovations and accelerated financial inclusion. However, to certain levels, competition may increase risk taking by banks where charter value is threatened. To this end, the assumption that efficiency and competition consideration may have eclipsed financial stability concerns in the run up to the global financial crisis has raised questions on the actual linkage between stability and competition, with increased calls for more nuanced approach to the assessment. This paper analyses the competition-stability nexus within the Kenyan context using quarterly data from 23 banks operating in the country between 2006 and 2018. The empirical estimation follows a three-step model. First, we construct a composite Bank Stability Index, building on the Uniform Financial Rating System Model that incorporates capital adequacy, asset quality, earnings and liquidity measures in the Bank stability estimate. Secondly, a proxy for bank competition is computed using the Panzar-Rosse H-statistic. Finally, we regress the Bank Stability Index against competition as measured by the H-Statistic, controlling for business cycles and some bank specific features including efficiency. The empirical results show a negative relationship between competition and bank stability. However, the relationship is not statistically significant. This underlines the need for an effective regulatory and supervisory environment that ensures stability even as the banking landscape grows increasingly competitive. This may include proactive policy measures that can counter the adverse effects of changes in banking competition on the sector's stability.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/249542
    Series: KBA Centre for Research on Financial Markets and Policy working paper series ; WPS, 20, 03 = 41
    Subjects: Bank; Wettbewerb; Bankenliquidität; Kenia
    Scope: 1 Online-Ressource (circa 36 Seiten), Illustrationen
  3. Competition and credit allocation in Kenya
    Author: Kimani, Stephanie; Atiti, Faith; Agung, Raphael
    Published: March 2021
    Publisher:  Kenya Bankers Association, Nairobi

    Literature has divergent views on the relationship between market structure and allocation of credit by banks. Using quarterly bank scope data from 23 banks operating in Kenya between 2006 and 2018, we find that, while an increase in competition may... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 792
    Inter-library loan:
    No inter-library loan

     

    Literature has divergent views on the relationship between market structure and allocation of credit by banks. Using quarterly bank scope data from 23 banks operating in Kenya between 2006 and 2018, we find that, while an increase in competition may improve allocation of credit in the short run, in the long run, increased competition may be detrimental to the amount of credit supplied to the private sector by commercial banks. This finding provides policy makers with evidence of how the structure of the Kenyan banking industry affects banks' credit allocation decisions. The findings may help inform the ongoing banking sector consolidation narrative given that changes to the competition structure of the market may not materially alter banks' lending behavior in the short and long run.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/249551
    Series: KBA Centre for Research on Financial Markets and Policy working paper series ; WPS, 21, 04 = 50
    Subjects: Kreditmarkt; Allokationseffizienz; Marktstruktur; Wettbewerbsanalyse; Kenia
    Scope: 1 Online-Ressource (circa 24 Seiten), Illustrationen
  4. The impact of the COVID-19 pandemic on bank lending
    a sectoral analysis
    Author: Kimani, Stephanie
    Published: May 2023
    Publisher:  Kenya Bankers Association, Nairobi

    This study examined the impact of the COVID-19 pandemic on bank lending across various sectors in Kenya. Using a multivariate Vector Autoregressive (VAR) model within a time series data framework, the study established the existence of both direct... more

    Access:
    Verlag (kostenfrei)
    Resolving-System (kostenfrei)

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 792
    Inter-library loan:
    No inter-library loan

     

    This study examined the impact of the COVID-19 pandemic on bank lending across various sectors in Kenya. Using a multivariate Vector Autoregressive (VAR) model within a time series data framework, the study established the existence of both direct and indirect COVID induced shocks on credit allocation to various sectors in the Kenyan economy. The main finding of the study was that the credit allocation response to the COVID-19 pandemic was through the demand channel. Therefore, any policy aimed at minimizing pandemicinduced economic damage by stimulating demand was not sufficient in catering for emerging supply distortions. Additionally, given that the COVID-19 pandemic induced uncertainty, resulting in a lagged response as revealed by the IRFs, most commercial banks would require to be incentivized, through prudential and supervisory bank regulations to extend and sustain positive credit allocation to the private sector.

     
    Export to reference management software   RIS file
      BibTeX file
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/271528
    Series: KBA Centre for Research on Financial Markets and Policy working paper series ; WPS, 23, 04 = 67
    Subjects: Kreditgeschäft; Branche; Coronavirus; Kenia
    Scope: 1 Online-Ressource (circa 28 Seiten), Illustrationen