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Assessment of Financial Stability among Commercial Banks in Kenya: An Evidence of Fragility Index...

The growing rates of non-performing loans in commercial banks, bank runs among commercial banks, and a growth in foreign liabilities from commercial banks in Kenya defined the volatility rate of the fragility index. The research was conducted between 2011 and 2018. The fragility index clearly increased and fluctuated from the end of 2014 to the beginning of 2015, and it was at this time that Dubai Bank, Chase Bank, and Imperial Bank were placed under receivership. In this study, the fragility index proved to be a reliable early warning indicator for Kenyan commercial banks' financial soundness. According to the report, vulnerable commercial banks should divest in order to merge in the future.



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