期刊名称：International Journal of Finance and Accounting
印刷版ISSN：2168-4812
电子版ISSN：2168-4820
出版年度：2016
卷号：5
期号：3
页码：135-145
DOI：10.5923/j.ijfa.20160503.01
语种：English
出版社：Scientific & Academic Publishing Co.
摘要：Banks play an important role as financial intermediaries for savers and borrowers in an economy. All sectors of the economy virtually depend on the banking sector for their very survival and growth. Efficiency is the ability to deliver products and services cost effectively without sacrificing quality. It involves a combination of right variables to enhance productivity and value of business operations, while driving down the cost of routine operations to a desired level. The Kenyan banking sector has grown tremendously in terms of numbers, size and customer base. Despite growth in the sector, challenges remain; according to the Central Bank of Kenya (CBK) 2012 report, market risk, credit and operational risk still pose a major challenge. There is still no model that bank managers may use to determine their operational efficiency levels. This paper examines the patterns and effect of bank specific performance indicators on their operational efficiency. The result reveals that, bank’s operational efficiency is well explained by bank specific performance indicators as R2 = 64%. Never the less, market share is a matter in determination of bank’s operational efficiency. Close attention to variables that effect operational efficiency is required for banks to remain competitive in the market.
关键词：Commercial Banks; Operating Efficiency; Specific Performance Indicators; Market Share
