Determinants of Net Interest Margins of Commercial Banks in Kenya: A Panel Study

By D. Tarus, Yonas Chekol, M. Mutwol. 2012

120 citations recorded by the source corpus.

Abstract This study investigates the determinants of net interest margin of commercial banks in Kenya using secondary data. We apply pooled and fixed effects regression to a panel of 44 Kenyan banks that covers the period 2000-2009. The estimation results show that operating expenses and credit risk has a positive and significant effect on net interest margin of the commercial banks in Kenya. The paper also finds that the higher the inflation, the wider the net interest margin, while growth and market concentration a have negative effect on net interest margin.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/9bcc0def93e04f918fdc6230978a752c6d11fe2e

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Citations in the corpus

Determinants of Bank Profitability: Empirical Evidence from Bangladesh (2015, background): “Tarusa, Yonas, and Mutwolc (2012) examine the factors of NIM of 44 commercial banks in Kenya by using pooled and fixed effects regression to a panel for the period 2000-2009.”
The determinants of bank net interest margins: A panel evidence from South Asian countries (2016, background): “Among others, Tarus et al. (2012) studied the determinants of net interest margins of commercial banks in Kenya using pooled and fixed effect panel covering the period of 2000- 2009.”
The impact of bank capital, bank liquidity and credit risk on profitability in postcrisis period:‎ A comparative study of US and Asia (2019, background): “Tarus, Chekol, and Mutwol (2012) reveal that credit risk has a positive impact on the profitability of commercial banks in case of net interest margin.”