EFFECTS OF MORTGAGE RISK ON MARKET RETURNS OF LISTED COMMERCIAL BANKS IN KENYA

Purpose: The study is focused to determine the effects of mortgage risk on market returns of listed commercial banks in Kenya Methodology: This study utilised Systematic review research design to locate, assemble and evaluate relevant studies that address the dependent and independent variables. Findings: The results indicated that the existing studies had a conceptual framework gap as empirical literature does not offer conclusive results on the applicability of the theories in managing mortgage risk and market returns. Previous studies were majorly conducted at a different time period in other markets presenting a geographical gap. Unique contribution to theory, practice and policy: The study will be beneficial to listed commercial banks in Kenya to adapt effective mortgage risk management strategies to sustain positive market returns. The models developed from this study will aid the government institutions that regulate listed commercial banks in Kenya to develop policies on sustainable mortgage risk management. The study will add new knowledge on mortgage risk management to maximise market returns for listed commercial banks in Kenya.