Effect of monetary policy on performance of commercial banks in kenya

The purpose of this book was to investigate the effect of monetary policies on the performance of commercial banks in Kenya. Previously the government did not develop monetary policies but instead gained their legitimacy through the Central Bank of Kenya in the midst of financial crises. Today there is considerable debate surrounding the effects of monetary policies with the emergence of active foreign trading and the need to formulate policies which will stimulate economic growth and maintain a low inflation. The bank operations suggest that banks play a special role in the transmission of monetary policies. Commercial banks are profit motivated institutions and their response to monetary policies largely influence their profit margins. The study will analyse the response of commercial banks to monetary policies in context of; central bank rate cash reserve ratio open market operations and uncertainty caused by expected outcome of monetary policies.