Abstract

This paper examines the effect of financial reforms on financial deepening in Kenya. The specificic objective of the study were to assess the effect of financial liberalization on savings mobilization, to analyze the effect of financial reforms on intermediation margin and to investigate the effect of financial liberalization on the size of financial sector. ARDL technique was used to analyse a time series data from 1975 to 2014. The researcher found that, on one hand, financial sector liberalization has a positive impact on interest rate spread, fosters a shift from short term to long term savings and has a negative impact on the size of financial sector. On the other hand financial repression has no impact on the interest rate spread, encourages short term savings and has a negative impact on the size of financial sector.

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School	: School of Law, Economics and Government
Issued Date	: 2017

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