Influence of Liquidity Risk Management on Financial Performance of Commercial Banks in Kenya

Abstract

The management of liquidity risk in commercial banks determines the banks' financial performance, which predominantly influences the quality of the loan portfolio and the nature of credit administration programs as a whole. By ensuring that liquidity risk is effectively managed, the primary objective of liquidity risk management is to generate a high-quality, stable, large, and growing flow of net interest income for banks. This objective is achieved by ensuring that banks can meet the needs of their customers. This study determined the effect of liquidity risk management on the financial performance of Kenyan commercial banks. The investigation was founded on the theory of liquidity management shiftability. The paradigm of Positivism served as the philosophical foundation for the investigation. The study incorporated both explanatory and longitudinal research designs into its methodology. The study's target population consisted of 32 Commercial Banks in Kenya. The study utilized panel data consisting of time series and cross-sectional data spanning a decade from 2010 to 2019. Using Eviews, descriptive and inferential statistics were used to analyze the collected data, which was then presented in tables and figures. The study found out that Liquidity risk management had an insignificant negative relationship with ROE (F=0.583912, p

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APA

Ambetsa, A (2024). Influence of Liquidity Risk Management on Financial Performance of Commercial Banks in Kenya. Afribary. Retrieved from https://track.afribary.com/works/influence-of-liquidity-risk-management-on-financial-performance-of-commercial-banks-in-kenya

MLA 8th

Ambetsa, Amira "Influence of Liquidity Risk Management on Financial Performance of Commercial Banks in Kenya" Afribary. Afribary, 04 Jun. 2024, https://track.afribary.com/works/influence-of-liquidity-risk-management-on-financial-performance-of-commercial-banks-in-kenya. Accessed 20 Jan. 2025.

MLA7

Ambetsa, Amira . "Influence of Liquidity Risk Management on Financial Performance of Commercial Banks in Kenya". Afribary, Afribary, 04 Jun. 2024. Web. 20 Jan. 2025. < https://track.afribary.com/works/influence-of-liquidity-risk-management-on-financial-performance-of-commercial-banks-in-kenya >.

Chicago

Ambetsa, Amira . "Influence of Liquidity Risk Management on Financial Performance of Commercial Banks in Kenya" Afribary (2024). Accessed January 20, 2025. https://track.afribary.com/works/influence-of-liquidity-risk-management-on-financial-performance-of-commercial-banks-in-kenya

Influence of Liquidity Risk Management on Financial Performance of Commercial Banks in Kenya

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