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RELATIONSHIP BETWEEN ECONOMIC GROWTH AND BANK PERFORMANCE FOR COMMERCIAL BANKS IN EAC COUNTRIES

Dr. Rutto Peter Ketyenya

Abstract


Purpose: The purpose of this study was to access the relationship between economic growth and bank performance for commercial banks in EAC countries

Methodology: The study used cross country data analysis of 100 commercial banks and collected secondary data from annual published audited financial statements for the period 1997-2011

Results: The results indicate that there was positive and significant relationship between economic growth and performance measures.

Policy recommendation: The study recommended that the Central bank should follow the performance levels from both the productivity and profitability aspects as a way of monitoring individual bank performance levels so as to boost economic growth



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Keywords


relationship, economic growth, bank performance

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