Browsing by Author "James Onyango Ayieyo"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Determinants of Lending Behavior in Selected Commercial Banks in Kenya
    (International Journal of Economics, Commerce and Management United Kingdom, 2026-03-23) James Onyango Ayieyo
    The study determined the effect of volume of deposit and interest rate on total loan advanced by selected commercial banks in Kenya. The study employed a correlation research design and was informed by theory of Money Supply. The population of study constituted all the ten banks listed at the Nairobi Securities Exchange (NSE) as at the year 2012. A census technique was used to constitute a sample size of nine commercial banks. The study focused on a ten-year period analysis (2002-2011) of the comprehensive financial statements of the sample size and adopted an econometric approach to test the degree of correlation between the variables by employing the multiple regression analysis of the Ordinary Least Square (OLS) method. The findings indicated that lending interest rates are negatively related and significantly affect the total loans advanced. Further, volume of deposit in commercial banks has a significant and positive effect on the total loan advanced. Therefore, commercial banks must innovate ways of increasing their profit through fee incomes and commissions since incomes from interest rate tend to decline with increase in the lending interest rate. Keywords: Total Loans, Lending Interest Rates, Volume of Deposit, Commercial Bank, Banking