Despite the concerted efforts by the Central bank of Kenya to reduce Commercial banks’ lending rates by use of various monetary policies, the banks’ lending rates in Kenya still remain unsustainably high. This work therefore seeks to establish the effect of CBR, inflation rate & exchange rate on commercial banks’ lending rates. This study used a descriptive research design and the target population of this study was the 42 Commercial banks and 1 Mortgage finance. The study used a descriptive research design and the target population of this study was the 42 Commercial banks and 1 Mortgage finance. It used data between January 2010 and December 2015 on a quarterly basis. Data ware obtained from bank supervision reports by Central Bank of Kenya and macroeconomics statistics from the Kenya national bureau of statistics. The secondary data was quantitative in nature (continuous data). The collected quantitative data were edited and coded and entered into a statistical package (R) for analysis. Both descriptive and inferential statistics were used to analyze the uantitative data. In descriptive statistics, the study used frequency distributions, mean, standard deviation and percentages.
My name is Irene Wanja, a graduate from Jomo Kenyatta University of Agriculture and Technology. This research shows how central bank rate, inflation rate and exchange rate affect commercial bank lending rate in Kenya.
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LAP LAMBERT Academic Publishing
Effects of central bank rate, inflation rateabd exchange rate on commercial banks lending rate.
BUSINESS & ECONOMICS / Banks & Banking