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The Influence Of Loan Collateral Requirements On Loan Uptake From Banks Listed At Nairobi Securities Exchange
Commercial banks are firms which receive deposits, offer loans, and provide related financial services. Banks listed at Nairobi Securities Exchange operate under similar socioeconomic environments. All these banks derive their significant revenue from loans extended to their members. When banks extend loans to their clients, they often request collateral to act as security for the money borrowed. However, profits posited by these banks differ considerably although most of their revenue comes from loans. This implies that there are differences in loan uptake in these banks which could account for the differences in revenue earned. Given that banks require different collaterals, there was need
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