EFFECT OF MARKET STRUCTURE ON BANK PERFORMANCE IN COMMERCIAL BANKS IN EAC COUNTRIES

Authors

  • Dr. Rutto Peter Ketyenya Dedan Kimathi University of Technology

Keywords:

relationship, economic growth, bank performance

Abstract

Purpose: The purpose of this study was to analyze effect of market structure on bank performance in commercial banks in EAC countries

Methodology: The study used cross country data analysis of 100 commercial banks and collected secondary data from annual published audited financial statements for the period 1997-2011

Results: The results indicate that there was positive and significant relationship between economic growth and performance measures.

Policy recommendation: The study recommended that the Central bank should follow the performance levels from both the productivity and profitability aspects as a way of monitoring individual bank performance levels so as to boost economic growth in the economy

Downloads

Download data is not yet available.

Author Biography

Dr. Rutto Peter Ketyenya, Dedan Kimathi University of Technology

Doctorate student

References

Aarma, A., Vainu, J., & Vensel, V. (2004).'Bank Performance Analysis: Methodology and Empirical Evidence (Estonian Banking System, 1994-2002)'. Journal of Economic Literature, (21), pp.1-28.

Beck,T., Fuchs, M., & Uy, Marilou. (2009). "˜Finance in Africa', World Bank Policy Research Working Paper 3955.

Bigliardi, B., & Bottani, E. (2010). "˜Performance measurement in the food supply chain: a balanced scorecard approach', Facilities, vol. 28, (5/6), pp.249-260.

Chatzoglou, D. P, Diamantidis, D. A. , & Vraimaki, E. (2010).'Banking productivity: an overview of the Greek banking system', Managerial Finance, vol. 36, (12), pp. 1007-1027.

Cihak, M. , Demirguc-Kunt, A. , Feyen, E. , & Levine, R. (2012). "˜"˜Benchmarking Financial Systems around the World', World Bank Policy Research Working Paper 6175.

Cihak, M., & Podpiera, R. (2005). "˜"˜Bank behavior in Developing Countries: Evidence from East Africa', IMF Working Paper WP/05/129

Delis, D. M., & Papanikolaou, N. I. (2009). "˜Determinants of bank efficiency: evidence from a semi-parametric methodology', Managerial Finance, vol. 35, (3), pp. 260-275.

Demirguc-Kunt, A., & Huizinger,H. (2001). "˜Financial Structure and Bank Profitability', World Bank Policy Research Working Paper 2430.

Demirguc-Kunt, A., & Huizinger,H. (2001). "˜Financial Structure and Bank Profitability', World Bank Policy Research Working Paper 2430

Demirguc-Kunt, A., & Martinez-Peria, M. S. (2010). "˜A Framework for Analyzing Competition in the Banking Sector: An Application to the Case of Jordan'. World Bank Policy Research Working Paper 5499.

Dietrich, A., & Mattig, A.W. , (2010). "˜Bank Market Structures and Performance Around the World', (July 1, 2010). Available at SSRN: http://ssrn.com/abstract=1860194

Edwards, S. , Allen, A. J. , & Shaik, S. (2006).'Market Structure Conduct Performance (SCP) Hypothesis Revisited using Stochastic Frontier Efficiency Analysis', Paper presented American Agricultural Economics Association Annual Meeting, Long Beach, California, July 23-26, 2006

European Central Bank (2010). "˜Beyond ROE-How to measure bank performance', Germany

Keh, H. T. , & Chu, S. T. (2006). "˜Efficiency, effectiveness and productivity of marketing in services', European Journal of Operational Research, vol. 170, (1), pp. 265-76.

Mishkin, F.S. (2001). The Economics of Money, Banking and Financial Markets, 6th edition Addison Wesley Publishers, NY, USA.

Panagiotou, G. (2006). "˜The impact of managerial cognitions on the structure-conduct-performance (SCP) paradigm: A strategic group perspective, Management Decision, vol. 44, (3), pp. 423-441

Ruiz-Porras, A. (2009).'Financial Structure, Financial Development and Banking Fragility: International Evidence', Análisis Económico, Núm. 56, vol. XXIV, pp. 147-173.

Wong, J. , Wang, T. , Wong, E., & Choi, K. (2007). "˜Determinants of the performance of banks in Hong Kong', Working Paper 06/2007, Hong Kong Monetary Authority

Downloads

Published

2017-04-19

How to Cite

Ketyenya, D. . R. P. (2017). EFFECT OF MARKET STRUCTURE ON BANK PERFORMANCE IN COMMERCIAL BANKS IN EAC COUNTRIES. European Journal of Business and Strategic Management, 2(4), 56–69. Retrieved from https://iprjb.org/journals/index.php/EJBSM/article/view/379

Issue

Vol. 2 No. 4 (2017)

Section

Articles

License

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.