Vol 5 Issue 3 July 2018-September 2018
Suku, Awuor, Moses, Dr. Elizabeth, Nambuswa, Makokha.
Abstract:A financial access survey conducted during the year revealed that 38 per cent of the adult Kenyan population lacks access to financial services. This population is excluded from formal banking institutions due to high costs of maintaining savings accounts and barriers to entry. The purpose of this study was to examine the effect of accessibility of financial services on performance of commercial banks in West Pokot County, Kenya. The specific objectives of the study were; to establish the effect of deposit services on performance of commercial banks in West Pokot County, Kenya.To assess the effect of loan access on performance of commercial banks in West Pokot County, Kenya. To find out the effect of borrowings on performance of commercial banks in West Pokot County, Kenya. To evaluate the effect of economic development on performance of commercial banks in West Pokot County, Kenya. The study adopted a descriptive research design.The target population included all 162 staffs in the 5 commercial banks.Since the population for this study was only 162, then census was applied. The study collected primary data. Primary data was collected using structured questionnaires. Questionnaires were administered by the drop-off and pick-up later method. Descriptive analysis was used to draw important conclusions and deductions with regards to the study objectives. Measures of standard deviation were obtained such as means, standard deviations and variance. Multiple regression analysis was done to assess the relationship between the independent variable (Deposit Services, Loan Access, Borrowings and Economic Development) and the dependent variable of (Performance). The results were presented in frequency distribution table, pie charts, figures and graphs. The study established that deposits p=0.000<0.05, loan access p=0.001<0.05 and borrowing p=0.000<0.05 all significantly influenced performance of commercial banks. However, economic development, p=0.112>0.05 did not significantly affect performance of commercial banks in West Pokot County, Kenya. The study concludes that Deposits significantly influenced performance of commercial banks. Diversified financial service offering has increased the number of customers in the banks. Deposit services have increased the savings rate of the locals in the banks. Loan access significantly influenced performance of commercial banks. Invention of new mechanisms for credit securitization has improved the loan repayment for the banks. Introduction of mobile phone-based repayment of loans has improved the level of loan repayment in the banks. Borrowing had significant influence on performance of commercial banks. Existence of investment opportunities in the region has improved the level of borrowing from the banks. Availability of ready demand for goods and services has created a ready market for the products and services. The money borrowed from banks is invested in economic boosting activities. The study recommends that the top management of commercial banks in West Pokot County, Kenya should strengthen their abilities to attract individual depositors as this shall improve their loan issuance. Commercial banks should enhance the rate which customer access loans as this would significantly result into enhanced performance. The marketing department of commercial banks in Kenya should target ready demand market of loans to improve financial performance. The loans borrowed from commercial banks should be used in educating the community regarding business management. The Central Bank of Kenya should formulate sound monetary policies that increase accessibility to credit and this shall improve the living standards of locals in an economy.
Keywords:Deposit services, Loan access, Borrowing, Economic Development and performance of commercial banks.
Title:IMPACT OF ACCESSIBILITY TO FINANCIAL SERVICES ON PERFORMANCE OF COMMERCIAL BANKS IN WEST POKOT COUNTY, KENYA
Author:Suku, Awuor, Moses, Dr. Elizabeth, Nambuswa, Makokha.
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
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