International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Effect of Credit Risk on Corporate Liquidity of Deposit Taking Microfinance Institutions
Murage, Caroline Wambui; Muiru, Monica Wanjiru

The objective of this study was to determine the effect of credit risk on corporate liquidity of Deposit Taking Microfinance Institutions (DTMs) in Kenya. The population of the study comprised all the nine DTMs in Kenya. The data for the study was collected from secondary sources for the period between 2011 and 2013. Regression analysis was used to determine the strength of the relationship between the variables. The findings of the study indicated that credit risk has a strong and a statistically significant effect on corporate liquidity of deposit taking microfinance institutions in Kenya.

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