The effect of financial innovations on financial performance of commercial banks in Kenya

Abstract

Over the last decade, the role of banking in the process of financial intermadiation hs been undergoing a profound transformation, owing to changes in the global financial system. Kenya's banking system has seen some major financial innovations in the past decade as well as steps to promote financial inclusion. The major impetus for financial innovation has been globalization of financial systems, deregulation, and great advances in technologies.. In increasingly intergrated financial systems facing higher volatilities, more competition and wide varieties of risks, financial innovation has become an essence to provide new products and strategies to better suit different circumstances of time and market and to meet different requirements of participants in financial system. The objective of this study was to establish the effect of financial innovations on financial performance on commercial banks in Kenya........................................................................