Effect of internal organizational factors on performance of commercial banks in Kenya

Abstract

Globally and in Kenya, commercial banks play an important role in economic stimulus of the economy as well distribution of growth. Banks channels funds from depositors to investors hence linking economic players of the nation. For this reason, studies seeking to improve commercial banks performance have increased tremendously. However, there is a dearth of studies on the effect of liquidity, capital, costs and operational efficiency on commercial banks’ financial performance. This study therefore sought to fill this gap by determining how liquidity management, capital strength, operational efficiency and cost affect commercial banks performance in Kenya.The main objective of this study was to determine the effects of the selected internal factors on performance of commercial banks in Kenya. Specifically the study sought to determine effect of liquidity management,capital strength, operational efficiency and cost on performance of commercial banks in Kenya.