Effects of agency banking on financial performance of commercial banks in keny: case study co-operative banks

Abstract

This study aimed to examine the effects of agency banking on the financial performance of commercial banks in Kenya, using a case study of a selected commercial bank. The study adopted a descriptive research design, and the sample size was 20 commercial banks, selected using stratified random sampling. Both primary and secondary data was collected, with primary data collected through a questionnaire administered to the sampled commercial banks and secondary data collected from the annual reports of the sampled commercial banks. Descriptive statistics was used to analyze the data, and the statistical tools that were used included frequencies, percentages, means, and standard deviations. The study used the bank-focused, bank-led, and agency theories to explain how agency banking facilitates financial intermediation and enhances financial inclusion. The conceptual framework illustrated the relationship between agency banking and the financial performance of commercial banks in Kenya, focusing on the impact of agency banking on profitability, liquidity, and efficiency. The findings of the study will be presented in Chapter four and the study's recommendations were provided in Chapter five. The study's results may be of significant value to policymakers and commercial banks in Kenya, providing insights into how to enhance the adoption of agency banking and improve the financial performance of commercial banks.