The study sought to ascertain the relationship and effects of foreign exchange liberalization on financial performance of commercial banks listed in Kenya’s Nairobi Securities Exchange. Baed on the study, this paper explores the extent to which interest rate fluctuations affect financial performance of banks listed at the NSE. The development of literature was guided by the interest rate parity theory. The study used a time series correlation research design targeting all commercial banks that are listed at the Nairobi Securities Exchange from 2006 to 2013. Data was sourced from the Central Bank of Kenya and published yearly accounts of listed banks. The study used multivariate Linear Regressions to establish the relationship between interest rates and bank performance indicators. The research results revealed a weak positive relationship between interest rate fluctuations and financial performance of commercial banks listed at the NSE. It is, therefore, recommended that the Central Bank of Kenya should come up with regulations to determine the interest rate of commercial banks and also help mitigate moral hazards incidental to financial performance of commercial banks.
- Home
- About us
- EDITORIAL BOARD
- INSTRUCTION TO AUTHOR
- Current Issue
- Archive
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November, 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November, 2021
- October, 2021
- September, 2021
- August, 2021
- July, 2021
- June, 2021
- May, 2021
- April 2021
- March 2021
- February 2021
- January 2021
- Submit Article
- Certificate
- Reviewers Form
- Contact Us