{"title":"SASRA审慎监管和肯尼亚储蓄信贷合作社的财务绩效","authors":"","doi":"10.53819/81018102t5245","DOIUrl":null,"url":null,"abstract":"Financial performance of Kenya’s deposit-taking savings and credit co-operative societies has been a source of concern, as evidenced by declining indicators over time. According to the SASRA study, profitability has declined significantly, as evidenced by a drop in Return on Assets (ROA) from 2.65% in 2020 to 1.59% in 2021. The purpose of this study was to investigate the effect of prudential requirements imposed by Kenya's Savings and Credit Cooperative Societies Regulatory Authority (SASRA) on the financial performance of Deposit Taking Savings and Credit Cooperative Organisations (SACCOs). The objectives of the study were to investigate the effect of liquidity, asset quality and capital sufficiency on and financial performance of deposit taking saving and credit co-operative societies in Kenya. The study was based on public interest theory, buffer theory and agency theory. The study employed a comparative research design and positivist research theory. The population studied in this study consisted of 175 licenced Deposit Taking SACCOs. Secondary data was used in the study, which was then analysed using descriptive and inferential statistics. Stata was used to conduct the analysis in this study. A multiple linear regression model was used to forecast financial performance. Diagnostic tests were performed to ensure that the linear regression model assumptions are not violated. The correlation results showed that liquidity has a negative correlation (-0.0497) with ROA. Capital adequacy showed a positive correlation (0.6710) with ROA. Similarly, asset quality had a positive correlation with ROA (0.5663). Panel regression results confirmed the importance of capital adequacy and asset quality in driving financial performance, as evidenced by highly significant coefficients (0.7140 and 0.2087, respectively) with p-values of 0.0000. The liquidity coefficient, on the other hand, was found to be -0.0008 with a p-value of 0.7380, indicating that changes in liquidity have a negligible impact on ROA. The study discovered that liquidity, capital adequacy, and asset quality explain 62.65% of the variation in financial performance (ROA). The study recommended that deposit-taking savings and credit co-operative societies (SACCOs) should take a balanced approach to liquidity management in order to optimise financial resources and potentially increase returns, and employ a solid capital base to improve stability. Keywords: Micro Finance Institutions, Non-performing loans, Net Interest margin, portfolio at risk, capital adequacy.","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"91 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2023-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"SASRA Prudential Regulations and Financial Performance of Deposit Taking Saving and Credit Co-Operative Societies in Kenya\",\"authors\":\"\",\"doi\":\"10.53819/81018102t5245\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"Financial performance of Kenya’s deposit-taking savings and credit co-operative societies has been a source of concern, as evidenced by declining indicators over time. According to the SASRA study, profitability has declined significantly, as evidenced by a drop in Return on Assets (ROA) from 2.65% in 2020 to 1.59% in 2021. The purpose of this study was to investigate the effect of prudential requirements imposed by Kenya's Savings and Credit Cooperative Societies Regulatory Authority (SASRA) on the financial performance of Deposit Taking Savings and Credit Cooperative Organisations (SACCOs). The objectives of the study were to investigate the effect of liquidity, asset quality and capital sufficiency on and financial performance of deposit taking saving and credit co-operative societies in Kenya. The study was based on public interest theory, buffer theory and agency theory. The study employed a comparative research design and positivist research theory. The population studied in this study consisted of 175 licenced Deposit Taking SACCOs. Secondary data was used in the study, which was then analysed using descriptive and inferential statistics. Stata was used to conduct the analysis in this study. A multiple linear regression model was used to forecast financial performance. Diagnostic tests were performed to ensure that the linear regression model assumptions are not violated. The correlation results showed that liquidity has a negative correlation (-0.0497) with ROA. Capital adequacy showed a positive correlation (0.6710) with ROA. Similarly, asset quality had a positive correlation with ROA (0.5663). Panel regression results confirmed the importance of capital adequacy and asset quality in driving financial performance, as evidenced by highly significant coefficients (0.7140 and 0.2087, respectively) with p-values of 0.0000. The liquidity coefficient, on the other hand, was found to be -0.0008 with a p-value of 0.7380, indicating that changes in liquidity have a negligible impact on ROA. The study discovered that liquidity, capital adequacy, and asset quality explain 62.65% of the variation in financial performance (ROA). The study recommended that deposit-taking savings and credit co-operative societies (SACCOs) should take a balanced approach to liquidity management in order to optimise financial resources and potentially increase returns, and employ a solid capital base to improve stability. Keywords: Micro Finance Institutions, Non-performing loans, Net Interest margin, portfolio at risk, capital adequacy.\",\"PeriodicalId\":39488,\"journal\":{\"name\":\"Afro-Asian Journal of Finance and Accounting\",\"volume\":\"91 1\",\"pages\":\"0\"},\"PeriodicalIF\":0.0000,\"publicationDate\":\"2023-10-24\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Afro-Asian Journal of Finance and Accounting\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.53819/81018102t5245\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q3\",\"JCRName\":\"Economics, Econometrics and Finance\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Afro-Asian Journal of Finance and Accounting","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.53819/81018102t5245","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
SASRA Prudential Regulations and Financial Performance of Deposit Taking Saving and Credit Co-Operative Societies in Kenya
Financial performance of Kenya’s deposit-taking savings and credit co-operative societies has been a source of concern, as evidenced by declining indicators over time. According to the SASRA study, profitability has declined significantly, as evidenced by a drop in Return on Assets (ROA) from 2.65% in 2020 to 1.59% in 2021. The purpose of this study was to investigate the effect of prudential requirements imposed by Kenya's Savings and Credit Cooperative Societies Regulatory Authority (SASRA) on the financial performance of Deposit Taking Savings and Credit Cooperative Organisations (SACCOs). The objectives of the study were to investigate the effect of liquidity, asset quality and capital sufficiency on and financial performance of deposit taking saving and credit co-operative societies in Kenya. The study was based on public interest theory, buffer theory and agency theory. The study employed a comparative research design and positivist research theory. The population studied in this study consisted of 175 licenced Deposit Taking SACCOs. Secondary data was used in the study, which was then analysed using descriptive and inferential statistics. Stata was used to conduct the analysis in this study. A multiple linear regression model was used to forecast financial performance. Diagnostic tests were performed to ensure that the linear regression model assumptions are not violated. The correlation results showed that liquidity has a negative correlation (-0.0497) with ROA. Capital adequacy showed a positive correlation (0.6710) with ROA. Similarly, asset quality had a positive correlation with ROA (0.5663). Panel regression results confirmed the importance of capital adequacy and asset quality in driving financial performance, as evidenced by highly significant coefficients (0.7140 and 0.2087, respectively) with p-values of 0.0000. The liquidity coefficient, on the other hand, was found to be -0.0008 with a p-value of 0.7380, indicating that changes in liquidity have a negligible impact on ROA. The study discovered that liquidity, capital adequacy, and asset quality explain 62.65% of the variation in financial performance (ROA). The study recommended that deposit-taking savings and credit co-operative societies (SACCOs) should take a balanced approach to liquidity management in order to optimise financial resources and potentially increase returns, and employ a solid capital base to improve stability. Keywords: Micro Finance Institutions, Non-performing loans, Net Interest margin, portfolio at risk, capital adequacy.
期刊介绍:
Finance and accounting are seen as essential components for the successful implementation of market-based development policies supporting economic liberalisation in the rapidly emerging economies in Africa, the Middle-East and Asia. AAJFA aims to foster greater discussion and research of the development of the finance and accounting disciplines in these regions. A major feature of the journal will be to emphasise the implications of this development and the effects on businesses, academics and professionals. Topics covered include: -Asset pricing, corporate finance, banking; market microstructure -Behavioural and experimental finance; law and finance -Emerging economies: finance, audit committees, corporate governance -Islamic finance, accounting and auditing -Equity analysis and valuation, venture capital and IPOs -National GAAP and IASs compliance, harmonisation and strategies -Financial measurement/disclosure, and the quality of information reported -Accountability and social/ethical/environmental measurement/reporting -Cultural, political, institutional impact on financial measurement/disclosure -Accounting practices for intellectual capital and other intangible assets -Provision of non-audit services and impairment to auditor independence -Audit quality and auditor skills; internal control/auditing -Management accounting, control and /use of key performance indicators -Accounting education and professional development, accounting history -Public sector and not-for-profit accounting