Influence of Credit Risk Measurement on Lending Performance of Commercial Banks in Nairobi County, Kenya

John Karanja, J. Bichanga, G. Kingoriah
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Abstract

The credit risk measurement has affected significantly the lending performance of the commercial banks not only in Kenya but also in east Africa and has led to financial crises and poor lending performance. There has been a dramatic loss in the banking industry and suddenly announced large losses due to credit exposures that turned sour. The general objective of this study was to evaluate the influence of credit risk measurement on the lending performance of commercial banks in Nairobi County, Kenya. This study used descriptive survey research design and the target population for this study was at two levels. The target population was employees of the 42 commercial banks in operation in Kenya and the sample consisted of credit managers and other bankers where purposive sampling was used to pick 42 credit managers and simple random sampling was used to select the other 301 respondents. Data was collected using questionnaires and analyzed using descriptive statistics and logistic regression analysis (binary) was used. The results of the study revealed that credit risks measurements influenced bank lending performance positively. The study concluded that credit risk measurement activities significantly influence the lending performance of commercial banks and as a result the operating capital of commercial banks have gone down. The study recommended that Kenya government through the National Treasury and in collaboration with CBK and KBA should develop policies that will help the commercial banks optimize of credit risks measurement and improve the lending performance which is currently affected to great extent.
信用风险度量对肯尼亚内罗毕商业银行贷款绩效的影响
信用风险度量对肯尼亚乃至东非商业银行的贷款绩效都产生了重大影响,并导致金融危机和贷款绩效不佳。银行业出现了巨大的亏损,由于信贷风险敞口出现问题,银行突然宣布出现巨额亏损。本研究的总体目的是评估信用风险测量对肯尼亚内罗毕县商业银行贷款绩效的影响。本研究采用描述性调查研究设计,研究对象分为两个层次。目标人群是在肯尼亚运营的42家商业银行的员工,样本包括信贷经理和其他银行家,其中有目的的抽样被用来挑选42名信贷经理,简单的随机抽样被用来选择其他301名受访者。资料收集采用问卷调查,分析采用描述性统计和logistic回归分析(二元)。研究结果表明,信用风险度量对银行贷款绩效有积极影响。研究发现,信用风险度量活动显著影响商业银行的贷款绩效,导致商业银行的营运资本下降。该研究建议肯尼亚政府通过国家财政部,并与CBK和KBA合作制定政策,帮助商业银行优化信贷风险衡量,改善目前受到很大影响的贷款绩效。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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