Factors Affecting Pricing Of Loanable Funds By Commercial Banks In Kenya

Pricing of loanable funds without a proper rationale or framework leads to uncertainty and unpredictability on the incidence of the next or expected interest rate. The uncertainty and unpredictability lead to high interest rates to cover for any eventual loss. High interest rates may lead to high cost of capital, low investment, reduction in aggregate supply of goods and services and a vicious circle that reduces economic growth. It also reduces credit availability and increase the risk of speculation and adverse selection. These problems result in lower standard of living due to reduced disposable income. The specific objectives of the study were: to examine how changes in wealth influence pricing of loanable funds by commercial banks in Kenya. Secondly, to examine how expected return on bonds relative to alternative assets influence pricing of loanable funds by commercial banks in Kenya. Third, to examine how liquidity of bonds relative to alternative assets influence pricing of loanable funds by commercial banks in Kenya. Fourth, was to examine how risk of bonds relative to alternative assets influence pricing of loanable funds by commercial banks in Kenya. Fifth was to examine how government short-term borrowings influence pricing of loanable funds by commercial banks in Kenya. And lastly, was to examine how changes in expected inflation influence pricing of loanable funds by commercial banks in Kenya. A descriptive cross sectional survey research design was used to collect qualitative and quantitative data.

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APA

MATETE, J (2021). Factors Affecting Pricing Of Loanable Funds By Commercial Banks In Kenya. Afribary. Retrieved from https://afribary.com/works/factors-affecting-pricing-of-loanable-funds-by-commercial-banks-in-kenya

MLA 8th

MATETE, JOHN "Factors Affecting Pricing Of Loanable Funds By Commercial Banks In Kenya" Afribary. Afribary, 01 Jun. 2021, https://afribary.com/works/factors-affecting-pricing-of-loanable-funds-by-commercial-banks-in-kenya. Accessed 28 May. 2024.

MLA7

MATETE, JOHN . "Factors Affecting Pricing Of Loanable Funds By Commercial Banks In Kenya". Afribary, Afribary, 01 Jun. 2021. Web. 28 May. 2024. < https://afribary.com/works/factors-affecting-pricing-of-loanable-funds-by-commercial-banks-in-kenya >.

Chicago

MATETE, JOHN . "Factors Affecting Pricing Of Loanable Funds By Commercial Banks In Kenya" Afribary (2021). Accessed May 28, 2024. https://afribary.com/works/factors-affecting-pricing-of-loanable-funds-by-commercial-banks-in-kenya