Abstract: Lending risk, the possibility of borrowers defaulting on loans, is a significant concern for financial institutions in Kenya. Financial institutions have been facing many challenges with high NPL ratios, indicating a concerning number of loan defaults. This has raised concern among different stakeholders in the sector. It’s also a concern for the CBK who is the regulator of banks in Kenya. The economy is driven by commercial banks and therefore any instability of the banking sector can lead to serious economic shock. Therefore, this study sought to investigate the effect of internet banking, credit information sharing on credit risk of selected commercial banks in Kenya. This research considered 39 Kenyan commercial banks operational from 2014-2023. Secondary data collected was summarized, coded, and tabulated using STATA 13. Random Effect Regression Model was used for estimation and findings revealed that internet banking significantly positively affected Kenyan commercial banks’ credit risk. This suggests that while credit information sharing plays an essential role in reducing credit risk, it may not substantially credit risk’s relationship with tech-driven financial services. The study concluded that while the rise of tech-driven financial services offers tremendous opportunities for increasing financial inclusion and convenience, it also presents challenges in terms of managing credit risk. Given that internet banking significantly influence credit risk, commercial banks should strengthen their risk management systems specific to digital platforms.
Keywords: Internet Banking, Credit Information Sharing, Credit Risk.
Title: EFFECT OF INTERNET BANKING, CREDIT INFORMATION SHARING ON CREDIT RISK OF SELECTED COMMERCIAL BANKS IN KENYA
Author: Robert Wandu Kamau, Dr. Salome Musau
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
Vol. 13, Issue 2, April 2025 - June 2025
Page No: 441-447
Research Publish Journals
Website: www.researchpublish.com
Published Date: 09-June-2025
