Abstract: The purpose of these study was to assess the mediating role of regulatory capital on the relationship between economic capital and profitability of commercial banks in Kenya. The study adopted systematic review which entailed reviewing studies on profitability, asset liability management and regulatory capital. Empirical studies between 2000 and 2019 were considered. From the findings, majority of the reviewed studies indicated that asset liability management affects profitability of commercial banks and similar results were obtained between capital regulation and profitability. The study also established that capital regulation has been successful used as moderating variable, however, the same has not been established as mediating variable between asset liability management and profitability. The study proposed a conceptual framework that would bring the mediating role of capital regulation on the relationship between asset liability management and profitability of commercial banks.
Keywords: Asset Liability Management, Commercial Banks, Economic Capital Modelling, Profitability.
Title: IMPACT OF ASSET LIABILITY MANAGEMENT AND ECONOMIC CAPITAL MODELLING ON THE PROFITABILITY OF KENYA COMMERCIAL BANKS: A REVIEW OF EXISTING EMPIRICAL EVIDENCE
Author: Edwin Ambetsa Amira, Dr. Willis Otuya
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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