Journal of Finance and Investment Analysis

Intervening Effect of Savings Mobilization on the Relationship between Bancassurance and Financial Performance of Commercial Banks in Kenya

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• Abstract 

  This study sought to establish the intervening effect of savings mobilization on the relationship between bancassurance and financial performance of commercial banks in Kenya. The study employed both primary and secondary data. Primary data was gathered by semi-structured questionnaires. The respondents were 27 commercial banks undertaking bancassurance.  Data analysis was carried out  by descriptive statistics and regression analysis by applying the Baron and Kenny (1986) model. Findings indicated that savings mobilization had no significant intervening effect on the relationship between bancassurance and financial performance of commercial banks. This suggests that the customer deposits relating to bancassurance mobilized by commercial banks in Kenya are not significant enough to have positive impact on pre-tax profits, return on assets and the ratio of non-interest income to total income. Managers of commercial banks need to come up with strategies to increase the savings mobilization dimension of bancassurance.

  JEL classification numbers: L25
  Keywords: Bancassurance, Savings Mobilization, Financial Performance and Intervening Effect.