What is it about?
The study sought to investigate the effect of real estate finance on the financial performance of listed commercial banks in Kenya. Data for nine listed commercial banks were collected for the period 2009 – 2013 from the annual reports of the respective banks. Panel regression analysis was employed on the collected data.
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Why is it important?
As banks offer mortgages, it is important to understand whether this business segment makes them money given the low number of mortgage accounts in Kenya. Over the years, real estate financing has been a preserve for mortgage financing companies. With time, commercial banks have started engaging in mortgage financing. With the rising non-performing loans among Kenyan banks, mortgages have seen as a safer bet to improve the loan portfolio performance.
Perspectives
This study contributes to the literature by providing the link between real estate financing and the financial performance of banks from a developing country’s perspective in Sub-Saharan Africa where housing demand is on the rise and therefore offers enormous opportunity for rapid growth for banks.
FREDRICK ODHIAMBO
ResearchPro Solutions
Read the Original
This page is a summary of: The Effect of Real Estate Finance on the Financial Performance of Listed Commercial Banks in Kenya: A Panel Evidence, Journal of Finance and Accounting, January 2015, Science Publishing Group,
DOI: 10.11648/j.jfa.20150304.11.
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