THE IMPACT OF FINANCIAL REGULATIONS ON THE PERFORMANCE OF COMMERCIAL BANKS IN KENYA: A CASE STUDY OF KCB BANK.

The objective of this research study was to establish the impact of financial regulations on the performance of commercial banks in Kenya with specific aims being: to determine the effects of financial regulations on the performance of Kenya Commercial Bank, to establish the effects of interest rate capping on the performance of Kenya Commercial Bank, to establish the effects of market structure on the performance of Kenya Commercial Bank, and to determine if bank liquidity affects the performance of Kenya Commercial Bank. The study will add to the body of literature and researchers shall be able to use this research study as a reference to what they will do in future not forgetting that it will be used as a source of literature review to their studies. Ninety eight respondents were chosen through stratified random sampling. The researcher used secondary information sources which were obtained through reading relevant literature available in the library, various documents, publications and reports including journals and magazines. The research questionnaires were administered by the researcher himself, and respondents’ data was analyzed through frequency and descriptive statistics. Data was presented with the aid of graphs and pie charts. The study established that the regulations are oriented towards achieving the development objectives of the country without having to sacrifice the prudential guidelines and financial sector stability considerations. The study recommends that KCB Management should ensure that all regulations provided by Central Bank are fully complied with. This will ensure that the bank does not face sanctions that might affect its daily operations and consequently impact on its performance