INFLUENCE OF FINANCIAL STRUCTURE ON BANK PERFORMANCE IN COMMERCIAL BANKS IN EAC COUNTRIES

Abstract

Purpose: The purpose of this study was to analyze the Influence of financial structure on bank performance in commercial banks in EAC countries Methodology: The study used cross country data analysis of 100 commercial banks and collected secondary data from annual published audited financial statements for the period 1997-2011 Results: The results from the balanced panel data set indicae a positive and significant relationship between financial structure and RoE. Policy recommendation: The study recommended that the bank regulators need to encourage banks to list on their respective stock exchanges so as to increase banks share and also to enable them source for funding in the capital markets.