Begi, Ondari Evans (2012) Determinants of Loan Lending Policy: A Comparative Study of the Commercial Banks and the Deposit Taking Savings and Credit Co-operative Societies in Nairobi. Masters thesis, Kenyatta University.
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Abstract
The loan lending policy has been identified as the major bottleneck inhibiting commercial banks and other financial institutions in meeting the credit needs of the credit demand in the market (Ad era, 1995, Economic Survey, 1998).As a result, a disparity exists between credit demand and credit supplies in the credit market. The entry of deposit-taking SACCOs into the credit market offering similar services; demand deposits, ATM services, Money transfer and other financial services as those offered by commercial banks implies that the supply of credit in the credit market has increased and that the action taken by one of these sectors directly in fluences the action taken by the other. This study therefore, compares the determinants of loan lending policy of deposit Taking SACCOs and the commercial banks in Nairobi for the period between 2010 and 2011 to determine if the bottleneck identified earlier has been completely removed. The research will target a population of 43 commercial banks and 195 registered Deposit Taking SACCOs as of January, 2010. However, the researcher will conduct a census on all the 43 commercial banks and 29 Deposit Taking SACCOs found in Nairobi. Information relating to the Economic conditions, Monetary policy, Competition in the credit market, quality of loan management staff, and Financial Position of the financial firms will be collected through the administration of questionnaires and careful analysis of secondary sources in cases where primary information is difficult to obtain. This will be done either by physically visiting the institutions to collect data or by directly extracting the information from published records; specifically from financial statements, loan amortization schedules and annual general meetings reports for both commercial banks and Deposit Taking SACCOs in Nairobi. The general objective of the study is to investigate determinants of the loan lending policy; a comparative study of commercial banks and Deposit Taking SACCOs in Nairobi. Because of the resource constraints and wide spread of target institutions, the study will be restricted to Nairobi County. Descriptive research design will be used to analyze the information and data collected. Relevant theoretical and empirical literature has been reviewed to appropriately position the work in literature; these are the Economic conditions, monetary policy, Competition in the credit market, quality of loan management staff and Financial Position of the financial firms. Based on the findings of the study; loan lending policy recommendations will be made to help policy makers hold a firm grip on effective business management on a going concern profitability basis. Equally, the findings will suggest to the monetary authorities their role in knitting the gap between demand and supply of credit in a liberalized money market; as it is the case in Kenya.
| Item Type: | Thesis (Masters) |
|---|---|
| Subjects: | H Social Sciences > HF Commerce H Social Sciences > HJ Public Finance |
| Divisions: | Africana |
| Depositing User: | Tim Khabala |
| Date Deposited: | 12 Sep 2017 14:05 |
| Last Modified: | 12 Sep 2017 14:05 |
| URI: | http://thesisbank.jhia.ac.ke/id/eprint/2035 |
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