Role of Credit Reference Bureau in Influencing Customer Repayment Behaviour in Mitigating against Credit Default among Commercial Banks in Kenya

Abstract

The study examined the role of Credit Reference Bureau (CRB) in influencing customer repayment behaviour in militating against credit default in commercial banks in Kenya. The study was based on the Information asymmetry theory Theory. The study used a Causal-Comparative descriptive survey design in evaluating the role of CRB in influencing customer repayment behaviour in mitigating against credit default in commercial banks in Kenya. The target population of the study consisted of all the 43 licensed commercial banks in Kenya under the Banking Act. The researcher used a census of all the 43 commercial banks in Kenya. Primary data was collected using questionnaires. Secondary data was obtained from CBK loan books and CBK annual Bank supervisory reports. Data was analysed using SPSS and results presented using graphs and tables .The researcher used descriptive statistics and inferential statistics. Inferential statistics comprised correlation, regression and Chi-square. The conclusion was that CRB plays a significant role in customer repayment behaviour in Mitigating against credit default in commercial banks in Kenya.