| dc.description.abstract | The study investigated the effect of debt securities on performance of commercial banks in
Nyeri County, Kenya. The study used quantitative descriptive research design and target
population comprised 16 commercial banks in Nyeri County, Kenya. The respondents
comprised 194 respondents in various departments. The study analyzed descriptive statistics
like frequencies, percentages and mean. Inferential statistics including correlation and
regression analysis were also used. The result of secondary data on financial performance
pointed the gross profit had the highest average mean of 3.2 while net profit had the lowest
mean. An observation of the years indicated that the gross and net profits for the banks were
highest in 2019, followed by 2022 while 2020 recorded the lowest annual profits. Debt
securities had a Pearson correlation coefficient r=0.312** at α < 0.000 and a 99% significance
level. Therefore, the null hypothesis was rejected since the R-value was less than 1. The study
concluded that performance was positively impacted but some products such as commercial
papers were unattractive to clients due to high risks of poor performance in wealth generation.
This situation was fueled further by the low training on its applicability towards boosting the
income levels of both the bank and client’s portfolio. The study recommends that the branch
managers should develop policy structure that requires mandatory frequent training on staff to
understand how not only main stream banking products operate but also securities such as
commercial papers. Further, the board of management should assess the risk-return aspect of
selected debt securities like the types of commercial papers to ascertain the ones which are
riskier than the rest. | en_US |
