INFLUENCE OF POSITIVE CREDIT INFORMATION SHARING DETERMINANTS ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA A SURVEY OF COMMERCIAL BANKS IN KISII TOWN

This study was designed to investigate the influence of positive credit information sharing determinants among commercial banks in Kenya. It assessed the influence of privacy protection of positive information sharing, influence of cost of sharing positive information, influence of level of technology and also established the influence of competition on financial performance of commercial banks in Kisii town, Kenya. The target population was 34 credit managers and branch managers working in the 17 commercial banks in Kisii town. A survey questionnaire was developed and employed to collect data. The data was presented in descriptive form supported by frequency counts and percentages. The study established that competition had a positive influence on financial performance of Commercial Banks. Privacy protection had a negative influence on financial performance of commercial banks. Further, costs of information sharing had a negative influence on financial performance of commercial banks. The study recommends that it is important for regulations to emphasis on confidentiality between financial instititutions and credit bureaus, collaboration/ free sharing of information between financial institutions and credit reference bureaus.