Background: Kenya is one of Africa's fastest-growing economies, and it is ranked first in East Africa. One of the driving elements behind this achievement may be mobile money transfer technologies. The majority of Kenya's commercial banks are now moving toward a branchless banking system, allowing low-value transactions to be completed outside of banking halls in locally selected stores.
The purpose of this study was to look into the impact of mobile banking on the capital structure of Kenyan commercial banks.
Materials and procedures: A descriptive cross-sectional survey was used in this investigation. As of December 2015, the study population consisted of 43 commercial banks in Kenya. The study took a cross-sectional method with a descriptive survey research design. The research was conducted from 2010 to 2015. The secondary data set was compiled from the banks' audited financial statements, those filed with the Nairobi Securities Exchange, and the CBK annual banking survey reports. It was decided to conduct a survey of all 43 commercial banks. A census of all 43 banks was carried out. To aid with data analysis, the Statistical Package for Social Sciences (SPSS) version 21.0 was utilised, along with STATA software.The quantity of loans provided, withdrawal volumes, deposit volumes, and the number of mobile bank users were found to be sufficient variables in describing the capital structure of commercial banks in Kenya. The coefficient of determination of 59.41 percent backs this up. The number of deposits was favourably and significantly related to the capital structure of commercial banks, according to the data. The amount of withdrawals was positively and significantly related to commercial bank capital structure, the amount of loans issued was negatively and significantly related to commercial bank capital structure, and the number of users was positively and significantly related to commercial bank capital structure.
As a result, commercial banks should focus their efforts on building excellent customer connections. Commercial banks should also make advantage of mobile technologies to expand their mobile banking services. The relationship between mobile banking and the capital structure of Kenyan commercial banks was studied using secondary data.
Author(S) Details
Musalia Kilasi Eric
Jomo Kenyatta University of Agriculture and Technology, P.O.Box 62000, 00200 Nairobi, Kenya.
Oluoch Oluoch
Department of Accounting and Finance, Jomo Kenyatta University of Agriculture and Technology, P.O.Box 62000, 00200 Nairobi, Kenya.
View Book:- https://stm.bookpi.org/NIEBM-V1/article/view/4373
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