DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AT NSE IN KENYA
DOI:
https://doi.org/10.47604/ijfa.1175Keywords:
Government Securities, Real Estate, Loans, Stock, Financial Performance. NSEAbstract
Purpose: The purpose of this study was to establish the determinants of financial performance of NSE listed commercial banks in Kenya.
Methodology: A descriptive study design attributed to a census approach aiming at the eleven listed commercial banks in Kenya was applied. The research relied on secondary data obtained from the audited financial statements of the said banks to create the correlation between the research variables. The information on the financial effecting of the listed banks was collected using a data collection matrix. The data was analyzed by the assistance of SPSS and the outcome presented in tables using statistical aspects, which include means and standard deviations.
Results: The study established that government securities (r = 0.680) had a positive and strong correlation with financial performance. Similarly, Real estate (r = 0.738), Loans (r = 0.922) and, stocks (r=.469) had a positive and weak correlation with financial performance. The findings of study show loans (p=0.000) was most significant, followed by funds allocated to Government securities at p=0.149 then by funds allocated to stocks (p=.850) and least significant was real estate financing at p=0.972 at 95% confidence level. The findings show that there was a strong positive correlation (r=0.926) between Funds allocation and financial performance of commercial banks, according to the findings, 85.7% of financial performance of commercial banks could be attributed to the funds allocation to various assets. Adding another variable say, x5 will lower the strength of the model from 85.7 % to 84.6 %.
Unique contribution to theory, practice and policy: The study recommends that listed commercial banks should diversify their real estate finance schemes to make it reachable to more customers since real estate had a significant effect of their financial performance. A study should be conducted on other variables such as inflation, exchange rates and interest rates fluctuations. A study should also be conducted to investigate the low yield of investment in loans in contrast to investment in government securities
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References
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credit supply:-Micro-evidence from the crisis. Journal of Financial Economics, 121(3), 569-594.
Affinito, M., Albareto, G., & Santioni, R. (2016). Questioni di Economia e Finanza
Purchases of sovereign debt securities by Italian banks during the crisis: the role
of balance-sheet conditions.
Ahmet B. (2010). The Effects of Macroeconomics Variables on Stock Returns: Evidence
from Turkey. European Journal of Social Sciences .14(3).
Alhassan, A. L. (2015). Income diversification and bank efficiency in an emerging market. managerial Finance, 41(12), 1318-1335.
AI-Tarawneh, A., & Khataybeh, M. (2015). Portfolio behaviour of commercial banks:
The expected utility approach: Evidence from Jordan. International Journal of Economics and Financial Issues, 5(2), 312-323.
Amediku, J. (2012). The Impact of Income Diversification on Bank Performance: a Case
Study of Zenith Bank, Cal Bank and Unibank, (September).
Ayre, J. J., & Luciano, T. (2018). A Solution for Bank Investment Portfoliosi PIMCO.
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Baele, L., De Jonghe, 0, Vander Vennet, R., (2007). Does the stock market value bank
diversification? » Journal of Banking and Finance 31 (7), pp. 1999-2023.
Berger, A. N., Hasan, I., & Zhou, M. (2010). The effects of focus versus diversification on
bank performance: Evidence from Chinese banks. Journal of Banking & Finance, 34(7), 1417-1435.
Bexley, J. B. (2014). Banking trends in the investment portfolio, 17, 1-6.
Bodie Z., Kane A., & Marcus A.J. (2004). Essentials of Investments "” 5th edition.
McGraw-Hill,
Boermans, M. A. (2015). Market concentration in the euro area bond markets An
Application with granular sectoral securities holdings statistics. Retrieved from dnb
Buch, C. M., Driscoll, J. C., & Ostergaard, C. (2010). Cross-Border Diversification in
Bank Asset Portfolios. International Finance, 13(1), 79-108.
Calmms, C. P. A., & Liu, Y. (2005). Financial Structure Change and Banking Income: A
Canada-U.S. Comparison. SSRN Electronic Journal.
Chan-Lau, J. A., Liu, E. X., & Schmittmann, J. M. (2012). Equity Returns in the Banking
Sector in the Wake of the Great Recession and the European Sovereign Debt Crisis Equity Returns in the Banking Sector in the Wake of the Great Recession and the Eurdpean Sovereign Debt Crisis 1 Prepared by.
Chenkin, A. (2016). Why don't the banks buy houses and rent them out instead of
providing mortgages for people to buy homes? - Quora. Retrieved March 26, 2018, from https://www.quora.com/Why-dont-the-banks-buy-houses-and-rent them-out-instead-of-providing-mortgages-for-people-to-buy-homes
Cohen M. H & NatOli V. D. (2003). Risk and Utility in Portfolio Optimization: Statistical mechanics and its Applications. Physica 324( 1-2), 81-88.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/
correlation analysis for the behavioral sciences (aid ed.). Mahwah, NJ: Lawrence Erlbaum Associates.
Deacle, S., & Elyasiani, E. (2014). Real Estate Investment by Bank Holding Companies
and Their Risk and Return: Nonparametric and GARCH Procedures Real Estate Investment by Bank Holding Companies and their Risk and Return: Non Parametric and GARCH Procedures. Retrieved from http://digitalcommons.ursinus.edu/bus_econ_fac
Deb, J., & Sen, G. (2016). Geographic Diversification in Indian Banking: Assessing the
Impact on Risk and Returns. Retrieved from
DeYoung, R., & Torna, G. (2013). Nontraditional banking activities and bank failures
during the financial crisis. Journal of Financial Intermediation, 22(3), 397-421.
Enock George, G., Miroga, J. B., Wilson Ngaruiya, N., Mindila, R., Nyakwara, S.,
Jared Mobisa, M., ... Moronge, M. 0. (2013). An Analysis of Loan Portfolio Management on Organization Profitability: Case of Commercial Banks in Kenya. Research Journal of Finance and Accounting, 4(8), 2222-2847.
Erel, I., Nadauld, T., & Stulz, R. (2011). Why Did U.S. Banks Invest in Highly-Rated Securitization Tranches? Cambridge, MA.
Falato, A., & Scharfstein, D. (2015). The Stock Market and Bank Risk-Taking. Retrieved
from whartonliquidity
Fikru, M. (2009). Loan Portfolio and Performance of Bank Holding Companies in the US:
2006- 2008, 2006-2008.
Galema, R., Lensink, R., & Spierdijk, L. (201I). International diversification and
Microfinance. Journal of International Money and Finance, 30(3), 507-515.
Gamra, S. Ben, & Plihon, D. (1997). Revenue diversification in emerging market
banks : implicatiotts for financial performance, 1-42.
Giannotti, C., Gibilaro, L., & Mattarocci, G. (2011). Liquidity risk exposure for specialised
and unspecialised real estate banks. Journal of Property Investment & Finance, 29(2), 98-114.
Hand, D. J. (1996). Statistics and the theory of measurement. Journal of the Royal Statistical Society. Series A (Statistics in Society), 159(3), 445-492.
Hanson, S., Shleifer, A., Stein, J. C., & Vishny, R. (2014). Banks as Patient Fixed Income Investors. Working Paper, 6137.
Hildebrand, T., Rocholl, J., & Schulz, A. (2012). Flight to Where? Evidence from Bank investments During the Financial Crisis. Retrieved from Warwick
Hoekstra, R., Kiers, H. A. L., & Johnson, A. (2012). Are assumptions of well-known
statistical techniques checked, and why (not)? Frontiers in Psychology, 3.
Instefjord, N., & Sasaki, K. (2007). Proprietary trading losses in banks: do banks invest Sufficiently in control? Annals of Finance, 3(3), 329-350.
Javed I. and Aziz H. (2005). Arbitrage Pricing Theory: Evidence From An Emerging
Stock Market. The Lahore Journal of Economics 10: 1 (Summer 2005) pp. 123 139.
Kamau, G. G., & Rugami, J. M. (2017). International Journal of Current Aspects in
Social Sciences (IJCASS), Volume 2, Issue I, December 2017, PP 1-11, 2(I), 1 11.
Kiweu, J. M. (2012). Income Diversification in the Banking Sector and Earnings
Volatility: Evidence from Kenyan Commercial Banks. Working Paper Series: Centre for Research on Financial Markets and Policy, WPS/02/12(December), 1 32
Kwan, S. H. (1997). Securities Activities by Commercial Banking Firms' Section 20
Subsidiaries: Risk, Return, and Diversification Benefits. Retrieved from FBSF
Landi & Venturelli.,(2012) "”determinants and effects of diversification on efficiency
and profitableness) 2nd ed). Project Management Institute, Newtown Square, PA
Levi, K. (2010). Transfer of Innovation "ž Development and Approbation of Applied
Courses Based on the Transfer of Teaching Innovations in Finance and Management for Further Education of Entrepreneurs and Specialists in Latvia , Lithuania and Bulgaria ". Education and Culture Lifelong Learning Programme, 1-166.
Lubatkin M., & Chatterjee S. {1994). Extending Modern Portfolio Theory into Domain of
Corporate Diversification: Does it Apply?. The Academy of Management Journal, 37(1), 109-136.
Makokha, A. N., Namusonge, G. S., & Sakwa, M. (2016). the Effect of Asset Diversification
on the Financial Performance of Commercial Banks in Kenya, 5(9), 5-8. Retrieved from University of Nairobi
Manapon L. (2007). An empirical investigation of Asset-Pricing Models in Australia.
Mauri P. (2006). Tests Of The Arbitrage Pricing Theory Using Macroeconomic Variables In
The Russian Equity Market.
Menggen.,(2007) The dark side of diversification: The case of U.S. financial holding
companies. Journal of Banking and Finance, 30, 2131-2161
Metcalf, T. (2017). How Banks Invest Money I Pocket Sense. Retrieved March 7, 2018,
from Pocket Sense
Molyneux, P., & Yip, J. (2013). Income diversification and performance of Islamic banks. journal of Financial Management, Markets and Institutions, 1(2011), 47 66.
Montgomery, D. C., Peck, E. A., & Vining, G. G. (2001). Introduction to linear regression analysis (3rd ed.). New York, NY: John Wiley & Sons.
Muchomba, J. K. (2013). Determinants of Commercial Banks' investment portfolios in Kenya: 2007 To 2012. Retrieved from University of Nairobi
Mulwa, J. M., Prof, I. I., Tarus, D., & Kosgei, I. 1. I. D. (2015). Commercial Bank Diversification : A Theoretical Survey. International Journal of Research in Management & Business Studies, 2(1), 45-49.
Murithi, J. G. (2013). Effects of Revenue Diversification into Non-Interest Income on Financial Performance of Commercial Banks in Kenya (A Case of Five Most Profitable Banks in Kenya). Retrieved from University of Nairobi
Musonye, F. M. (2015). Effects of capital investment appraisal techniques on financial Performance of banks listed at the Nairobi Securities Exchange. Retrieved from
Mwangi, G. (2012). The Effect of Credit Risk Management on the Financial Performance of commercial Banks in Kenya. International Journal of Financial Research, 1(1), 45-47.
Nakayiza, K. S. (2013). Interest Rates and Loan Portfolio Performance in Commercial
Banks. A case study of Centenary Bank Entebbe Road Branch (Uganda).
Nguyen, M., Perera, S., & Skully, M. (2016). Bank market power, ownership, regional presence and revenue diversification: Evidence from Africa. Emerging Markets Review, 27, 36-62.
Njuguna, J. (2012). The relationship between corporate governance practices and-investment decisions by Commercial Banks in Kenya. Retrieved from
Ojiambo, L. A. A. (2014). The Effect of Real Estate Finance on Financial. Department Of finance and Accounting School of Business University of Nairobi, (October), 1 61.
Olszewski, K. (2012). The impact of commercial real estate on the financial sector, its tracking by central banks and some recommendations for the macro-financial stability policy of central banks, (May), 1-40.
Ongore, V. 0., & Kusa, G. B. (2013). Determinants of Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237- 252.
Orabi, M. wan M. A. (2012). Assessment of Investment Portfolios of Jordanian Banks, 8 (12), 251-271.
Osborne, J. W., & Waters, E. (2002). Four assumptions of multiple regression that researchers Should always test. Practical Assessment, Research & Evaluation, 8(2).
Oweis, Ahmed. (2012). The Impact of Corporate Diversification on the Financial Performance of U.S. Bank Holding Companies Pre and Post the Financial Services Modernization Act of 1999. CGU Theses & Dissertations, 58.
Rubin, J., Giczcwski, S., & Olson, M. (2013). Basel 1II ' s implications for commercial real Estate, (August), 1-5.
Samsi, A. M., Yusof, Z., & Cheong, K. C. (2012). Linkages between the real sector and the Financial sector: The case of malaysi. Asian Academy of Management Journal of accounting and Finance, 8(SUPPL.), 93-113.
Sankale, 0. S. (2013). Effect of treasury bills rate on commercial paper yield for companies listed at the Nairobi Securities Exchange.
Sanya, S., & Wolfe, S. (2011). Can Banks in Emerging Economies Benefit from Revenue
Diversification? Journal of Financial Services Research, 40(1-2), 79-101.
Saunders A., & Cornett M. M. (2006). Financial Institutions Management: A risk Management Approach "” 5th ed. Irwin McGraw-Hill.
Shim, J. (2013). Bank capital buffer and portfolio risk: The influence of business cycle
and revenue diversification. Journal of Banking & Finance, 37(3), 761-772.
Simpson, J. L., & Evans, J. P. (2003). Banking Stock Returns and Their Relationship to Interest rates and Exchange Rates: Australian Evidence. SSRN Electronic Journal.
Stiroh, K. J. (2012). Diversification in Banking. Oxford University Press.
Sy, A. (2005). Managing the Interest Rate Risk of Indian Banks ' Government
securities Holdings. October, 1-18.
Tan, Y., & Floros, C. (2012). Stock market volatility and bank performance in China. Studies in Economics and Finance, 29(3), 211-228.
Thiong 'o, P. K., Matata, K., & Simiyu, A. (2016). Effect of Loan Portfolio Growth on Financial Performance of Commercial Banks in Kenya.
Triad. (2016). Top 4 Reasons Banks Should Have a Diversified Portfolio. Retrieved March 7, 2018, from Triadfs .
Wagner, W (2010), "Diversification at financial institutions and systemic crises", Journal of Financial Intermediation 19(3): 373-386.
Wijethilaka, E.T.S. (2015). Impact of Bank Income Diversification to Bank Performance: Evidence from Sri Lanka. In Proceedings of the 4th Students' Research Symposium, Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka. p 48.
Zhang, D., Cai, J., Liu, J., & Kutan, A. M. (2016). Real estate investments and financial stability:
evidence from regional commercial banks in China. The European Journal of Finance.
credit supply:-Micro-evidence from the crisis. Journal of Financial Economics, 121(3), 569-594.
Affinito, M., Albareto, G., & Santioni, R. (2016). Questioni di Economia e Finanza
Purchases of sovereign debt securities by Italian banks during the crisis: the role
of balance-sheet conditions.
Ahmet B. (2010). The Effects of Macroeconomics Variables on Stock Returns: Evidence
from Turkey. European Journal of Social Sciences .14(3).
Alhassan, A. L. (2015). Income diversification and bank efficiency in an emerging market. managerial Finance, 41(12), 1318-1335.
AI-Tarawneh, A., & Khataybeh, M. (2015). Portfolio behaviour of commercial banks:
The expected utility approach: Evidence from Jordan. International Journal of Economics and Financial Issues, 5(2), 312-323.
Amediku, J. (2012). The Impact of Income Diversification on Bank Performance: a Case
Study of Zenith Bank, Cal Bank and Unibank, (September).
Ayre, J. J., & Luciano, T. (2018). A Solution for Bank Investment Portfoliosi PIMCO.
Retrieved March 7,2018, from https://www.pimco.com/en us/insights/other/financial-institutions/a-solution-for-bank-investment-portfolios
Ayre, J. J., & Purani, C. K. (2013). Bank Investment Portfolios Challenges Present Opportunities PIMCO. Retrieved March 7, 2018, from pirnco
Baele, L., De Jonghe, 0, Vander Vennet, R., (2007). Does the stock market value bank
diversification? » Journal of Banking and Finance 31 (7), pp. 1999-2023.
Berger, A. N., Hasan, I., & Zhou, M. (2010). The effects of focus versus diversification on
bank performance: Evidence from Chinese banks. Journal of Banking & Finance, 34(7), 1417-1435.
Bexley, J. B. (2014). Banking trends in the investment portfolio, 17, 1-6.
Bodie Z., Kane A., & Marcus A.J. (2004). Essentials of Investments "” 5th edition.
McGraw-Hill,
Boermans, M. A. (2015). Market concentration in the euro area bond markets An
Application with granular sectoral securities holdings statistics. Retrieved from dnb
Buch, C. M., Driscoll, J. C., & Ostergaard, C. (2010). Cross-Border Diversification in
Bank Asset Portfolios. International Finance, 13(1), 79-108.
Calmms, C. P. A., & Liu, Y. (2005). Financial Structure Change and Banking Income: A
Canada-U.S. Comparison. SSRN Electronic Journal.
Chan-Lau, J. A., Liu, E. X., & Schmittmann, J. M. (2012). Equity Returns in the Banking
Sector in the Wake of the Great Recession and the European Sovereign Debt Crisis Equity Returns in the Banking Sector in the Wake of the Great Recession and the Eurdpean Sovereign Debt Crisis 1 Prepared by.
Chenkin, A. (2016). Why don't the banks buy houses and rent them out instead of
providing mortgages for people to buy homes? - Quora. Retrieved March 26, 2018, from https://www.quora.com/Why-dont-the-banks-buy-houses-and-rent them-out-instead-of-providing-mortgages-for-people-to-buy-homes
Cohen M. H & NatOli V. D. (2003). Risk and Utility in Portfolio Optimization: Statistical mechanics and its Applications. Physica 324( 1-2), 81-88.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/
correlation analysis for the behavioral sciences (aid ed.). Mahwah, NJ: Lawrence Erlbaum Associates.
Deacle, S., & Elyasiani, E. (2014). Real Estate Investment by Bank Holding Companies
and Their Risk and Return: Nonparametric and GARCH Procedures Real Estate Investment by Bank Holding Companies and their Risk and Return: Non Parametric and GARCH Procedures. Retrieved from http://digitalcommons.ursinus.edu/bus_econ_fac
Deb, J., & Sen, G. (2016). Geographic Diversification in Indian Banking: Assessing the
Impact on Risk and Returns. Retrieved from
DeYoung, R., & Torna, G. (2013). Nontraditional banking activities and bank failures
during the financial crisis. Journal of Financial Intermediation, 22(3), 397-421.
Enock George, G., Miroga, J. B., Wilson Ngaruiya, N., Mindila, R., Nyakwara, S.,
Jared Mobisa, M., ... Moronge, M. 0. (2013). An Analysis of Loan Portfolio Management on Organization Profitability: Case of Commercial Banks in Kenya. Research Journal of Finance and Accounting, 4(8), 2222-2847.
Erel, I., Nadauld, T., & Stulz, R. (2011). Why Did U.S. Banks Invest in Highly-Rated Securitization Tranches? Cambridge, MA.
Falato, A., & Scharfstein, D. (2015). The Stock Market and Bank Risk-Taking. Retrieved
from whartonliquidity
Fikru, M. (2009). Loan Portfolio and Performance of Bank Holding Companies in the US:
2006- 2008, 2006-2008.
Galema, R., Lensink, R., & Spierdijk, L. (201I). International diversification and
Microfinance. Journal of International Money and Finance, 30(3), 507-515.
Gamra, S. Ben, & Plihon, D. (1997). Revenue diversification in emerging market
banks : implicatiotts for financial performance, 1-42.
Giannotti, C., Gibilaro, L., & Mattarocci, G. (2011). Liquidity risk exposure for specialised
and unspecialised real estate banks. Journal of Property Investment & Finance, 29(2), 98-114.
Hand, D. J. (1996). Statistics and the theory of measurement. Journal of the Royal Statistical Society. Series A (Statistics in Society), 159(3), 445-492.
Hanson, S., Shleifer, A., Stein, J. C., & Vishny, R. (2014). Banks as Patient Fixed Income Investors. Working Paper, 6137.
Hildebrand, T., Rocholl, J., & Schulz, A. (2012). Flight to Where? Evidence from Bank investments During the Financial Crisis. Retrieved from Warwick
Hoekstra, R., Kiers, H. A. L., & Johnson, A. (2012). Are assumptions of well-known
statistical techniques checked, and why (not)? Frontiers in Psychology, 3.
Instefjord, N., & Sasaki, K. (2007). Proprietary trading losses in banks: do banks invest Sufficiently in control? Annals of Finance, 3(3), 329-350.
Javed I. and Aziz H. (2005). Arbitrage Pricing Theory: Evidence From An Emerging
Stock Market. The Lahore Journal of Economics 10: 1 (Summer 2005) pp. 123 139.
Kamau, G. G., & Rugami, J. M. (2017). International Journal of Current Aspects in
Social Sciences (IJCASS), Volume 2, Issue I, December 2017, PP 1-11, 2(I), 1 11.
Kiweu, J. M. (2012). Income Diversification in the Banking Sector and Earnings
Volatility: Evidence from Kenyan Commercial Banks. Working Paper Series: Centre for Research on Financial Markets and Policy, WPS/02/12(December), 1 32
Kwan, S. H. (1997). Securities Activities by Commercial Banking Firms' Section 20
Subsidiaries: Risk, Return, and Diversification Benefits. Retrieved from FBSF
Landi & Venturelli.,(2012) "”determinants and effects of diversification on efficiency
and profitableness) 2nd ed). Project Management Institute, Newtown Square, PA
Levi, K. (2010). Transfer of Innovation "ž Development and Approbation of Applied
Courses Based on the Transfer of Teaching Innovations in Finance and Management for Further Education of Entrepreneurs and Specialists in Latvia , Lithuania and Bulgaria ". Education and Culture Lifelong Learning Programme, 1-166.
Lubatkin M., & Chatterjee S. {1994). Extending Modern Portfolio Theory into Domain of
Corporate Diversification: Does it Apply?. The Academy of Management Journal, 37(1), 109-136.
Makokha, A. N., Namusonge, G. S., & Sakwa, M. (2016). the Effect of Asset Diversification
on the Financial Performance of Commercial Banks in Kenya, 5(9), 5-8. Retrieved from University of Nairobi
Manapon L. (2007). An empirical investigation of Asset-Pricing Models in Australia.
Mauri P. (2006). Tests Of The Arbitrage Pricing Theory Using Macroeconomic Variables In
The Russian Equity Market.
Menggen.,(2007) The dark side of diversification: The case of U.S. financial holding
companies. Journal of Banking and Finance, 30, 2131-2161
Metcalf, T. (2017). How Banks Invest Money I Pocket Sense. Retrieved March 7, 2018,
from Pocket Sense
Molyneux, P., & Yip, J. (2013). Income diversification and performance of Islamic banks. journal of Financial Management, Markets and Institutions, 1(2011), 47 66.
Montgomery, D. C., Peck, E. A., & Vining, G. G. (2001). Introduction to linear regression analysis (3rd ed.). New York, NY: John Wiley & Sons.
Muchomba, J. K. (2013). Determinants of Commercial Banks' investment portfolios in Kenya: 2007 To 2012. Retrieved from University of Nairobi
Mulwa, J. M., Prof, I. I., Tarus, D., & Kosgei, I. 1. I. D. (2015). Commercial Bank Diversification : A Theoretical Survey. International Journal of Research in Management & Business Studies, 2(1), 45-49.
Murithi, J. G. (2013). Effects of Revenue Diversification into Non-Interest Income on Financial Performance of Commercial Banks in Kenya (A Case of Five Most Profitable Banks in Kenya). Retrieved from University of Nairobi
Musonye, F. M. (2015). Effects of capital investment appraisal techniques on financial Performance of banks listed at the Nairobi Securities Exchange. Retrieved from
Mwangi, G. (2012). The Effect of Credit Risk Management on the Financial Performance of commercial Banks in Kenya. International Journal of Financial Research, 1(1), 45-47.
Nakayiza, K. S. (2013). Interest Rates and Loan Portfolio Performance in Commercial
Banks. A case study of Centenary Bank Entebbe Road Branch (Uganda).
Nguyen, M., Perera, S., & Skully, M. (2016). Bank market power, ownership, regional presence and revenue diversification: Evidence from Africa. Emerging Markets Review, 27, 36-62.
Njuguna, J. (2012). The relationship between corporate governance practices and-investment decisions by Commercial Banks in Kenya. Retrieved from
Ojiambo, L. A. A. (2014). The Effect of Real Estate Finance on Financial. Department Of finance and Accounting School of Business University of Nairobi, (October), 1 61.
Olszewski, K. (2012). The impact of commercial real estate on the financial sector, its tracking by central banks and some recommendations for the macro-financial stability policy of central banks, (May), 1-40.
Ongore, V. 0., & Kusa, G. B. (2013). Determinants of Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237- 252.
Orabi, M. wan M. A. (2012). Assessment of Investment Portfolios of Jordanian Banks, 8 (12), 251-271.
Osborne, J. W., & Waters, E. (2002). Four assumptions of multiple regression that researchers Should always test. Practical Assessment, Research & Evaluation, 8(2).
Oweis, Ahmed. (2012). The Impact of Corporate Diversification on the Financial Performance of U.S. Bank Holding Companies Pre and Post the Financial Services Modernization Act of 1999. CGU Theses & Dissertations, 58.
Rubin, J., Giczcwski, S., & Olson, M. (2013). Basel 1II ' s implications for commercial real Estate, (August), 1-5.
Samsi, A. M., Yusof, Z., & Cheong, K. C. (2012). Linkages between the real sector and the Financial sector: The case of malaysi. Asian Academy of Management Journal of accounting and Finance, 8(SUPPL.), 93-113.
Sankale, 0. S. (2013). Effect of treasury bills rate on commercial paper yield for companies listed at the Nairobi Securities Exchange.
Sanya, S., & Wolfe, S. (2011). Can Banks in Emerging Economies Benefit from Revenue
Diversification? Journal of Financial Services Research, 40(1-2), 79-101.
Saunders A., & Cornett M. M. (2006). Financial Institutions Management: A risk Management Approach "” 5th ed. Irwin McGraw-Hill.
Shim, J. (2013). Bank capital buffer and portfolio risk: The influence of business cycle
and revenue diversification. Journal of Banking & Finance, 37(3), 761-772.
Simpson, J. L., & Evans, J. P. (2003). Banking Stock Returns and Their Relationship to Interest rates and Exchange Rates: Australian Evidence. SSRN Electronic Journal.
Stiroh, K. J. (2012). Diversification in Banking. Oxford University Press.
Sy, A. (2005). Managing the Interest Rate Risk of Indian Banks ' Government
securities Holdings. October, 1-18.
Tan, Y., & Floros, C. (2012). Stock market volatility and bank performance in China. Studies in Economics and Finance, 29(3), 211-228.
Thiong 'o, P. K., Matata, K., & Simiyu, A. (2016). Effect of Loan Portfolio Growth on Financial Performance of Commercial Banks in Kenya.
Triad. (2016). Top 4 Reasons Banks Should Have a Diversified Portfolio. Retrieved March 7, 2018, from Triadfs .
Wagner, W (2010), "Diversification at financial institutions and systemic crises", Journal of Financial Intermediation 19(3): 373-386.
Wijethilaka, E.T.S. (2015). Impact of Bank Income Diversification to Bank Performance: Evidence from Sri Lanka. In Proceedings of the 4th Students' Research Symposium, Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka. p 48.
Zhang, D., Cai, J., Liu, J., & Kutan, A. M. (2016). Real estate investments and financial stability:
evidence from regional commercial banks in China. The European Journal of Finance.
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2020-11-26
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Ndungu, K. N., & Bosire, J. (2020). DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AT NSE IN KENYA. International Journal of Finance and Accounting, 5(2), 48 – 68. https://doi.org/10.47604/ijfa.1175
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