IDEAS home Printed from https://ideas.repec.org/a/bdu/ojijfa/v9y2024i5p1-6id2992.html
   My bibliography  Save this article

Treasury Bill Investment and Financial Performance of Tier Three Commercial Banks in Kenya

Author

Listed:
  • Herbert Omondi Aser
  • Dr. Ochieng’ Linus Isaac
  • Dr. Opuodho Gordon

Abstract

Purpose: Bank tier categorization is determined by size, complexity, and regulatory requirements, with criteria varying by country and authority (CBK, 2020). Tier 3 banks are the smallest, providing basic services to individuals and small businesses (CBK, 2020). This study investigated the impact of Treasury bill investment on the financial performance of Tier 3 commercial banks in Kenya. Methodology: This study was grounded on the theory of Capital Asset Pricing. The study used secondary data from the Central Bank of Kenya and audited financial statements from 2015 to 2022. Focusing on Return on Assets, the findings aimed to help Tier 3 banks optimize financial performance. Findings: Results showed that investing in treasury bills significantly improved financial performance of tier three commercial banks. Unique Contribution to Theory, Practice and Policy: The study recommended that policy makers should come up with policies that favor allocating more investment capital towards Treasury bill investment so that banks may seize opportunities to optimize their investment strategies and consequently strengthen their overall financial performance in the market.

Suggested Citation

  • Herbert Omondi Aser & Dr. Ochieng’ Linus Isaac & Dr. Opuodho Gordon, 2024. "Treasury Bill Investment and Financial Performance of Tier Three Commercial Banks in Kenya," International Journal of Finance and Accounting, IPRJB, vol. 9(5), pages 1-6.
    • Handle: RePEc:bdu:ojijfa:v:9:y:2024:i:5:p:1-6:id:2992
    as

    Download full text from publisher

    File URL: https://www.iprjb.org/journals/index.php/IJFA/article/view/2992/3522
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdu:ojijfa:v:9:y:2024:i:5:p:1-6:id:2992. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chief Editor (email available below). General contact details of provider: https://iprjb.org/journals/index.php/IJFA/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.