The Relationship between Credit Reference Bureau Services and Financial Performance of the Commercial Banks in Kenya A Survey of Commercial Banks in Meru County

Abstract

This study sought to establish the relationship between credit reference bureau services and financial performance of the commercial banks in Kenya. Banks’ financial performance is compared against customer information sharing, credit scoring, market research, and information capital. The study adopted a descriptive research design which was suitable to answer the questions concerning relationship between credit reference bureau services and financial performance of commercial banks in Meru County. The study was a census and focusing on all the eighteen banks operating in Meru County. Self - administered questionnaires were employed to collect data. The data was processed and analyzed using statistical package for social sciences (SPSS). Descriptive statistics and linear regression analyses were used to examine the relationship between credit reference bureau services and financial performance of commercial banks in Meru County. The results are presented in summary reports, charts and tables. The study established that there is a significant relationship between customer information sharing and performance of commercial banks in Meru County.Credit scoring is imperative in the success of commercial banks and significant in sustaining a competitive advantage and assessing of borrowers credit worthiness. It was hence concluded credit information sharing and credit scoring were significantly associated with financial performance of commercial banks in Meru County.