Abstract: The study assessed how capital, liquidity, and credit regulations affect the profitability of commercial banks in Kenya. The research was based on theories of liquidity management and capital buffers. A casual approach to investigation was adopted. The target population consisted of the 43 commercial banks in Kenya, and the inclusion criterion was institutions that have been operational for nine years (between 2013 and 2021). The study acquired secondary data from the bank's financial statements and audited reports using a data collection schedule. The descriptive and panel regression methods of analysis were utilized, and the results of the analysis were presented in tables. Findings revealed that capital regulation and liquidity regulation both had negative and significant effect on commercial banks’ profitability in Kenya while credit regulation displayed a positive and insignificant effect on the profitability of commercial banks in Kenya. The study recommend that the liquidity regulation of the central be strengthen to ensure that the banks liquidity is sufficient to meet the daily demands of the bank customers. This can be done through constant monitoring and review of the liquidity.
Keywords: Prudential Regulations, Capital Regulation, Credit Regulation, Liquidity Regulation and Profitability.
Title: ANALYSIS OF PRUDENTIAL REGULATIONS AND PROFITABILITY OF COMMERCIAL BANKS IN KENYA
Author: Okong’o Fred Arege, Nyaga Gilbert Njagi
International Journal of Interdisciplinary Research and Innovations
ISSN 2348-1218 (print), ISSN 2348-1226 (online)
Vol. 11, Issue 4, October 2023 - December 2023
Page No: 13-22
Research Publish Journals
Website: www.researchpublish.com
Published Date: 09-October-2023
