The Role of Credit Information Sharing on the Performance of Commercial Banks in Mombasa County, Kenya

Abstract

The general objective of the study is to investigate the role of credit information sharing on the performance of Commercial Banks in Mombasa County. The specific objectives of the study are: i) to establish the role of knowledge of borrowers on the performance of Commercial Banks in Mombasa County; ii) to examine the role of informational rent on the performance of Commercial Banks in Mombasa County and; iii) to examine the role of customer discipline on the performance of Commercial Banks in Mombasa County. The type of research design to be employed is a survey where both qualitative and quantitative techniques will be used to collect data from a sample of 50 credit managers drawn from a total population of 36commercial banks in Mombasa County. Questionnaires will then be issued to each these credit managers to gather primary data while secondary will be obtained from bank supervision report, bank financial reports and credit reports. The data gathered through the questionnaires will then be entered into the application software (SPSS) which will generate both descriptive and inferential statistics. Descriptive statistics will include mean, frequency, median and standard deviation. On the other hand, inferential statistics will include regression analysis where a multiple regression model will be generated to explain how much of the dependent variable (non-performing loans) is explained by the three independent variables of the study.