The paper sought to explore the role of bank capital in mitigating credit risk and promoting financial stability. To achieve this, we constructed a Financial Soundness Index to evaluate financial stability conditions. A Panel Vector Auto Regression Model was employed using annual bank-level data...

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...

This paper uses annual data from Kenyan banks over the 2010-2020 period to empirically analyze the link between diversification (non-interest income) and bank performance. Using dynamic panel regressions, the study finds that banks which diversify (functionally) their sources of revenues tend to...

This paper examines the impact of bank merger and acquisitions (M&As) on lending behavior by commercial banks. We employ the dataset of 31 sample Kenyan commercial banks over the period 2003 to 2015. Further we employ panel data models as well as difference-in-differences (DID) to explain the...

The study seeks to investigate the nexus between market power and stability of the banking industry in pre FinTech period (2003 - 2009) and post FinTech entrance period (2010 - 2017). Specifically, the study seeks to investigate the effect of FinTech entrance on market power and later analyze...

This paper seeks to evaluate efficiency and competition dynamics of the Kenyan banking sector for the period 2001-2017 using bank-level data for 37 commercial banks. To achieve this, the paper uses a three-step estimation approach; first, we apply non-parametric Data Envelopment Analysis (DEA)...