| dc.description.abstract | The moderating role of virtual banking on Interest income and financial performance has been a matter of debate. Whether, this role has enhanced interest income is the ground for anchoring this study. The study sought to assess the effect of interest income and analyze the moderating role of virtual banking on the relationship between Interest Income and Financial Performance of the commercial banks in Kenya. This study was guided by the Resource based theory, Market Power Theory, Adoption, diffusion and usage of innovations theory (ADUI) and Transactional cost innovative (TCI) theory. The study adopted quantitative research paradigm design. The target population comprised of 120 senior management staff from 40 Commercial Banks operating in Kenya between the years 2013 to 2017. Cochran (1963) formula was used to arrive at a sample size of 36 commercial banks. Simple random sampling technique was used in the study. Secondary and Primary data collection methods were used. Instrument reliability stood at Cronbach’s Alpha of 0.879. The study tested for unit root and stationarity, co-integration, multi-collinearity, presence of outliers, normality and heteroscedasticity. The results showed that Interest Income had a positive significant influence on financial performance ( = 0.616, t = 38.466, p=0.000< 0.05). The study recommended that banks should embrace virtual banking to improve income and performance. The study will be significant in the management of financial institutions, Government policy makers and other regulators may use it and can also form a basis for further research. | en_US |
