{"id":"https://openalex.org/W7203636462","doi":"https://doi.org/10.46827/ejefr.v10i5.2282","title":"RISK-BASED CAPITAL AND FINANCIAL STABILITY: EMPIRICAL EVIDENCE FROM KENYAN LISTED BANKS","display_name":"RISK-BASED CAPITAL AND FINANCIAL STABILITY: EMPIRICAL EVIDENCE FROM KENYAN LISTED BANKS","publication_year":2026,"publication_date":"2026-08-03","ids":{"openalex":"https://openalex.org/W7203636462","doi":"https://doi.org/10.46827/ejefr.v10i5.2282"},"language":"en","primary_location":{"id":"doi:10.46827/ejefr.v10i5.2282","doi":"https://doi.org/10.46827/ejefr.v10i5.2282","is_oa":true,"landing_page_url":"https://doi.org/10.46827/ejefr.v10i5.2282","pdf_url":"https://oapub.org/soc/index.php/EJEFR/article/download/2282/2842","source":{"id":"https://openalex.org/S4210234666","display_name":"European Journal of Economic and Financial Research","issn_l":"2501-9430","issn":["2501-9430"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/P4327874097","host_organization_name":"Open Access Publishing Group","host_organization_lineage":["https://openalex.org/P4327874097"],"host_organization_lineage_names":["Open Access Publishing Group"],"type":"journal"},"license":"cc-by","license_id":"https://openalex.org/licenses/cc-by","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"European Journal of Economic and Financial Research","raw_type":"journal-article"},"parent_works":[],"lineage":["https://openalex.org/W7203636462"],"child_works_count":0,"type":"article","is_traditional":true,"indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"diamond","oa_url":"https://oapub.org/soc/index.php/EJEFR/article/download/2282/2842","any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5087330164","display_name":"Omondi Godfrey Odundo","orcid":"https://orcid.org/0000-0003-4512-7200","observed_orcids":["https://orcid.org/0000-0003-4512-7200"]},"institutions":[{"id":"https://openalex.org/I195610458","display_name":"Maseno University","ror":"https://ror.org/023pskh72","country_code":"KE","type":"education","lineage":["https://openalex.org/I195610458"]}],"countries":["KE"],"is_corresponding":false,"raw_author_name":"Omondi Godfrey Odundo","raw_affiliation_strings":["Department of Accounting and Finance,\r\nSchool of Business and Economics, \r\nMaseno University, \r\nKenya"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Accounting and Finance,\r\nSchool of Business and Economics, \r\nMaseno University, \r\nKenya","institution_ids":["https://openalex.org/I195610458"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5040715211","display_name":"Peter Kamau Ndichu","orcid":"https://orcid.org/0009-0001-3527-6352","observed_orcids":["https://orcid.org/0009-0001-3527-6352"]},"institutions":[{"id":"https://openalex.org/I195610458","display_name":"Maseno University","ror":"https://ror.org/023pskh72","country_code":"KE","type":"education","lineage":["https://openalex.org/I195610458"]}],"countries":["KE"],"is_corresponding":false,"raw_author_name":"Peter Kamau Ndichu","raw_affiliation_strings":["Department of Accounting and Finance,\r\nSchool of Business and Economics, \r\nMaseno University, \r\nKenya"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Accounting and Finance,\r\nSchool of Business and Economics, \r\nMaseno University, \r\nKenya","institution_ids":["https://openalex.org/I195610458"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5079485069","display_name":"Ondiwa Simon Oluoch","orcid":"https://orcid.org/0000-0002-0521-5321","observed_orcids":["https://orcid.org/0000-0002-0521-5321"]},"institutions":[{"id":"https://openalex.org/I195610458","display_name":"Maseno University","ror":"https://ror.org/023pskh72","country_code":"KE","type":"education","lineage":["https://openalex.org/I195610458"]}],"countries":["KE"],"is_corresponding":false,"raw_author_name":"Simon Oluoch Ondiwa","raw_affiliation_strings":["Department of Accounting and Finance,\r\nSchool of Business and Economics, \r\nMaseno University, \r\nKenya"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Accounting and Finance,\r\nSchool of Business and Economics, \r\nMaseno University, \r\nKenya","institution_ids":["https://openalex.org/I195610458"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":1,"corresponding_author_ids":[],"corresponding_institution_ids":["https://openalex.org/I195610458"],"apc_list":null,"apc_paid":null,"fwci":0.0,"has_fulltext":true,"cited_by_count":0,"citation_normalized_percentile":{"value":0.0,"is_in_top_1_percent":false,"is_in_top_10_percent":false},"cited_by_percentile_year":null,"biblio":{"volume":"10","issue":"5","first_page":null,"last_page":null},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10127","display_name":"Banking stability, regulation, efficiency","score":0.9994999766349792,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10127","display_name":"Banking stability, regulation, efficiency","score":0.9994999766349792,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T14183","display_name":"Banking Sector Performance and Management","score":9.999999747378752e-05,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11365","display_name":"Islamic Finance and Banking Studies","score":9.999999747378752e-05,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/risk-based-capital","display_name":"risk-based capital","score":0.8700000047683716},{"id":"https://openalex.org/keywords/financial-stability","display_name":"financial stability","score":0.984000027179718},{"id":"https://openalex.org/keywords/bank-capital-regulation","display_name":"bank capital regulation","score":0.628000020980835},{"id":"https://openalex.org/keywords/basel-iii","display_name":"Basel III","score":0.8820000290870667},{"id":"https://openalex.org/keywords/risk-weighted-assets","display_name":"risk-weighted assets","score":0.972000002861023},{"id":"https://openalex.org/keywords/cost-income-ratio","display_name":"cost-to-income ratio","score":0.6899999976158142},{"id":"https://openalex.org/keywords/prudential-regulation","display_name":"prudential regulation","score":0.7599999904632568},{"id":"https://openalex.org/keywords/bank-resilience","display_name":"bank resilience","score":0.5709999799728394},{"id":"https://openalex.org/keywords/macroeconomic-growth","display_name":"macroeconomic growth","score":0.6079999804496765},{"id":"https://openalex.org/keywords/central-bank-of-kenya","display_name":"Central Bank of Kenya","score":0.6759999990463257},{"id":"https://openalex.org/keywords/bank-concentration","display_name":"bank concentration","score":0.5299999713897705},{"id":"https://openalex.org/keywords/bank-mergers-and-acquisitions","display_name":"bank mergers and acquisitions","score":0.6230000257492065},{"id":"https://openalex.org/keywords/nairobi-securities-exchange","display_name":"Nairobi Securities Exchange","score":0.5870000123977661}],"concepts":[{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.5932000279426575},{"id":"https://openalex.org/C187651312","wikidata":"https://www.wikidata.org/wiki/Q114","display_name":"Kenya","level":2,"score":0.5317000150680542},{"id":"https://openalex.org/C16969640","wikidata":"https://www.wikidata.org/wiki/Q1070805","display_name":"Capital adequacy ratio","level":3,"score":0.5228999853134155},{"id":"https://openalex.org/C6422946","wikidata":"https://www.wikidata.org/wiki/Q857354","display_name":"Panel data","level":2,"score":0.49239999055862427},{"id":"https://openalex.org/C58980837","wikidata":"https://www.wikidata.org/wiki/Q1372876","display_name":"Hausman test","level":4,"score":0.4781000018119812},{"id":"https://openalex.org/C556758197","wikidata":"https://www.wikidata.org/wiki/Q580018","display_name":"Monetary economics","level":1,"score":0.4749999940395355},{"id":"https://openalex.org/C73283319","wikidata":"https://www.wikidata.org/wiki/Q1416617","display_name":"Financial system","level":1,"score":0.4690999984741211},{"id":"https://openalex.org/C45237549","wikidata":"https://www.wikidata.org/wiki/Q1376796","display_name":"Restructuring","level":2,"score":0.4553999900817871},{"id":"https://openalex.org/C2864544","wikidata":"https://www.wikidata.org/wiki/Q2914988","display_name":"Capital requirement","level":3,"score":0.4528999924659729},{"id":"https://openalex.org/C2777747085","wikidata":"https://www.wikidata.org/wiki/Q5449743","display_name":"Financial sector development","level":3,"score":0.4397999942302704},{"id":"https://openalex.org/C83646750","wikidata":"https://www.wikidata.org/wiki/Q193893","display_name":"Capital (architecture)","level":2,"score":0.4228000044822693},{"id":"https://openalex.org/C183206440","wikidata":"https://www.wikidata.org/wiki/Q46834","display_name":"Balance sheet","level":2,"score":0.421099990606308},{"id":"https://openalex.org/C166052673","wikidata":"https://www.wikidata.org/wiki/Q83021","display_name":"Empirical evidence","level":2,"score":0.37209999561309814},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.33379998803138733},{"id":"https://openalex.org/C198531522","wikidata":"https://www.wikidata.org/wiki/Q485146","display_name":"Sample (material)","level":2,"score":0.3312999904155731},{"id":"https://openalex.org/C2992337254","wikidata":"https://www.wikidata.org/wiki/Q31275820","display_name":"Financial stability","level":2,"score":0.31779998540878296},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.31619998812675476},{"id":"https://openalex.org/C610760","wikidata":"https://www.wikidata.org/wiki/Q1340706","display_name":"Endogeneity","level":2,"score":0.30880001187324524},{"id":"https://openalex.org/C58202505","wikidata":"https://www.wikidata.org/wiki/Q5035700","display_name":"Capital formation","level":4,"score":0.30410000681877136},{"id":"https://openalex.org/C44970651","wikidata":"https://www.wikidata.org/wiki/Q17014030","display_name":"Fixed effects model","level":3,"score":0.30160000920295715},{"id":"https://openalex.org/C112972136","wikidata":"https://www.wikidata.org/wiki/Q7595718","display_name":"Stability (learning theory)","level":2,"score":0.2896000146865845},{"id":"https://openalex.org/C96250715","wikidata":"https://www.wikidata.org/wiki/Q965330","display_name":"Estimation","level":2,"score":0.28929999470710754},{"id":"https://openalex.org/C98014903","wikidata":"https://www.wikidata.org/wiki/Q832161","display_name":"Financial ratio","level":2,"score":0.28060001134872437},{"id":"https://openalex.org/C18347183","wikidata":"https://www.wikidata.org/wiki/Q809928","display_name":"Basel I","level":5,"score":0.2669000029563904},{"id":"https://openalex.org/C560292","wikidata":"https://www.wikidata.org/wiki/Q1113011","display_name":"Fixed capital","level":5,"score":0.2590999901294708},{"id":"https://openalex.org/C181683161","wikidata":"https://www.wikidata.org/wiki/Q7301159","display_name":"Real gross domestic product","level":2,"score":0.2581000030040741},{"id":"https://openalex.org/C149933338","wikidata":"https://www.wikidata.org/wiki/Q950816","display_name":"Capital structure","level":3,"score":0.2565999925136566},{"id":"https://openalex.org/C44750222","wikidata":"https://www.wikidata.org/wiki/Q1897397","display_name":"Financial capital","level":3,"score":0.2540999948978424},{"id":"https://openalex.org/C19244329","wikidata":"https://www.wikidata.org/wiki/Q208697","display_name":"Financial market","level":2,"score":0.2508000135421753},{"id":"https://openalex.org/C115781380","wikidata":"https://www.wikidata.org/wiki/Q994824","display_name":"Gross fixed capital formation","level":3,"score":0.25049999356269836}],"mesh":[],"locations_count":1,"locations":[{"id":"doi:10.46827/ejefr.v10i5.2282","doi":"https://doi.org/10.46827/ejefr.v10i5.2282","is_oa":true,"landing_page_url":"https://doi.org/10.46827/ejefr.v10i5.2282","pdf_url":"https://oapub.org/soc/index.php/EJEFR/article/download/2282/2842","source":{"id":"https://openalex.org/S4210234666","display_name":"European Journal of Economic and Financial Research","issn_l":"2501-9430","issn":["2501-9430"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/P4327874097","host_organization_name":"Open Access Publishing Group","host_organization_lineage":["https://openalex.org/P4327874097"],"host_organization_lineage_names":["Open Access Publishing Group"],"type":"journal"},"license":"cc-by","license_id":"https://openalex.org/licenses/cc-by","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"European Journal of Economic and Financial Research","raw_type":"journal-article"}],"best_oa_location":{"id":"doi:10.46827/ejefr.v10i5.2282","doi":"https://doi.org/10.46827/ejefr.v10i5.2282","is_oa":true,"landing_page_url":"https://doi.org/10.46827/ejefr.v10i5.2282","pdf_url":"https://oapub.org/soc/index.php/EJEFR/article/download/2282/2842","source":{"id":"https://openalex.org/S4210234666","display_name":"European Journal of Economic and Financial Research","issn_l":"2501-9430","issn":["2501-9430"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/P4327874097","host_organization_name":"Open Access Publishing Group","host_organization_lineage":["https://openalex.org/P4327874097"],"host_organization_lineage_names":["Open Access Publishing Group"],"type":"journal"},"license":"cc-by","license_id":"https://openalex.org/licenses/cc-by","version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"European Journal of Economic and Financial Research","raw_type":"journal-article"},"sustainable_development_goals":[{"score":0.6452000141143799,"id":"https://metadata.un.org/sdg/8","display_name":"Decent work and economic growth"}],"study_designs":[],"awards":[],"funders":[],"has_content":{"grobid_xml":true,"pdf":true},"content_urls":{"pdf":"https://content.openalex.org/works/W7203636462.pdf","grobid_xml":"https://content.openalex.org/works/W7203636462.grobid-xml"},"referenced_works_count":36,"referenced_works":["https://openalex.org/W1495656322","https://openalex.org/W1583753724","https://openalex.org/W1974244766","https://openalex.org/W1990176981","https://openalex.org/W2046742912","https://openalex.org/W2079615115","https://openalex.org/W2093093881","https://openalex.org/W2112352537","https://openalex.org/W2150059822","https://openalex.org/W2300238865","https://openalex.org/W2514798086","https://openalex.org/W2593576255","https://openalex.org/W2800836189","https://openalex.org/W2809907160","https://openalex.org/W2889690732","https://openalex.org/W2911899763","https://openalex.org/W2921119239","https://openalex.org/W2980215153","https://openalex.org/W2988810120","https://openalex.org/W3000477095","https://openalex.org/W3082806039","https://openalex.org/W3121306919","https://openalex.org/W3122893082","https://openalex.org/W3181698683","https://openalex.org/W3188711635","https://openalex.org/W3216403012","https://openalex.org/W4200005287","https://openalex.org/W4205658717","https://openalex.org/W4206430709","https://openalex.org/W4220978671","https://openalex.org/W4248727917","https://openalex.org/W4367626739","https://openalex.org/W4388390316","https://openalex.org/W4400620412","https://openalex.org/W4401345475","https://openalex.org/W4405613168"],"related_works":["https://openalex.org/W3081080184","https://openalex.org/W7212231666","https://openalex.org/W3093606669","https://openalex.org/W2567336565","https://openalex.org/W2993828346","https://openalex.org/W7064703887","https://openalex.org/W4403479205","https://openalex.org/W2908055129","https://openalex.org/W2582346960","https://openalex.org/W7045488718"],"abstract_inverted_index":{"Since":[0],"the":[1,5,56,80,95,109,133,211,264,276,303,325,335],"Global":[2],"Financial":[3],"Crisis,":[4],"stability":[6,68,88,190,203,221,237,268,313],"of":[7,29,40,60,82,112,121,263,305,327,339],"commercial":[8],"banks":[9,126],"has":[10,42],"remained":[11],"a":[12,117,196],"central":[13,295],"policy":[14,329],"concern,":[15],"intensifying":[16],"in":[17,108,188,266,299,330],"Kenya":[18,41,300],"where":[19],"mergers,":[20],"acquisitions":[21],"and":[22,103,106,147,149,160,173,185,198,210,217,233,275,301,343],"restructuring":[23],"have":[24],"concentrated":[25],"more":[26],"than":[27],"75%":[28],"banking-sector":[30],"market":[31],"share":[32],"among":[33,89],"nine":[34],"listed":[35,74,91],"banks.":[36],"The":[37,114,165,228,259,287,318],"Central":[38],"Bank":[39],"simultaneously":[43],"tightened":[44],"Basel":[45],"III-aligned":[46],"risk-based":[47,83,292],"capital":[48,53,84,194,315,322,350],"requirements,":[49],"yet":[50],"whether":[51],"such":[52],"regulation,":[54],"alongside":[55,349],"underlying":[57],"risk":[58],"composition":[59,304,338],"banks'":[61],"balance":[62,341],"sheets,":[63,342],"translates":[64],"into":[65],"greater":[66],"financial":[67,87,169,202,267,312],"remains":[69],"empirically":[70],"unresolved":[71],"for":[72,94,311],"Kenya's":[73],"banking":[75],"segment.":[76],"This":[77],"study":[78,115,319],"examines":[79],"effects":[81],"(RBC)":[85],"on":[86,201],"Kenyan":[90],"banks,":[92],"controlling":[93],"risk-weighted":[96,306,337],"assets-to-total":[97],"assets":[98,307],"ratio,":[99],"operational":[100,345],"cost":[101],"efficiency,":[102],"macroeconomic":[104],"growth":[105,246],"anchored":[107],"Buffer":[110],"Theory":[111],"Capital.":[113],"uses":[116],"balanced":[118],"quarterly":[119],"panel":[120],"eight":[122],"Nairobi":[123],"Securities":[124],"Exchange-listed":[125],"over":[127,191],"2013Q1\u20132025Q2.":[128],"After":[129],"introducing":[130],"one-quarter":[131],"lags,":[132],"estimation":[134],"sample":[135],"comprises":[136],"392":[137],"bank-quarter":[138],"observations.":[139],"A":[140],"Hausman":[141],"test":[142],"supports":[143],"bank":[144,189,297,340],"fixed":[145],"effects,":[146],"cross-sectional":[148],"period":[150],"heteroskedasticity":[151],"are":[152,278],"addressed":[153],"through":[154],"Panel":[155],"EGLS":[156],"with":[157,220,236],"cross-section":[158],"weights":[159],"panel-corrected":[161],"standard":[162],"errors":[163],"(PCSE).":[164],"lagged":[166],"dependent":[167],"variable,":[168],"stability,":[170],"is":[171,214,231,247,294],"positive":[172,197],"highly":[174],"significant":[175,199],"(\u03c1":[176],"=":[177,205,208,223,226,239,242,254,257,270],"0.5248,":[178],"p":[179,207,225,241,256,272],"<":[180,273],"0.001),":[181,274],"confirming":[182],"strong":[183],"persistence":[184],"path":[186],"dependence":[187],"time.":[192],"Risk-based":[193],"exerts":[195],"effect":[200],"(\u03b2":[204,222,238,253],"1.2912,":[206],"0.0004),":[209],"risk-weighted-assets-to-total-assets":[212],"ratio":[213,230],"also":[215],"positively":[216],"significantly":[218,234],"associated":[219,235],"0.2656,":[224],"0.0045).":[227],"cost-to-income":[229],"negatively":[232,248],"\u22120.2210,":[240],"0.0002),":[243],"while":[244],"GDP":[245],"signed":[249],"but":[250],"statistically":[251],"insignificant":[252],"\u22120.0172,":[255],"0.1344).":[258],"model":[260],"explains":[261],"86.6%":[262],"variation":[265],"(F":[269],"204.37,":[271],"results":[277],"broadly":[279],"robust":[280],"to":[281,296],"an":[282],"alternative":[283],"two-quarter":[284],"lag":[285],"structure.":[286],"findings":[288],"confirm":[289],"that":[290,302,321,332,344],"adequate":[291],"capitalisation":[293],"resilience":[298],"carries":[308],"independent":[309],"information":[310],"beyond":[314],"adequacy":[316,351],"alone.":[317],"recommends":[320],"regulation":[323],"remain":[324],"cornerstone":[326],"prudential":[328],"Kenya,":[331],"supervisors":[333],"monitor":[334],"evolving":[336],"efficiency":[346],"be":[347],"strengthened":[348],"requirements.":[352],"JEL:":[353],"G21;":[354],"G28;":[355],"G32;":[356],"G34;":[357],"L11":[358]},"counts_by_year":[],"updated_date":"2026-11-04T10:54:05.112534","created_date":"2026-08-18T00:00:00"}