期刊名称：European Journal of Business and Social Sciences
印刷版ISSN：2235-767X
出版年度：2016
卷号：5
期号：7
页码：144-158
出版社：European Society of Business and Social Sciences
摘要：Banks operate in an environment of considerate risks and uncertainty. Systemicrisk has always been a vicinity of concern not only to bankers but to all in thebusiness world because the risks of a trading partner not fulfilling his obligationsin full on due date can seriously jeopardize the affaires of the other partner. The purpose ofthis study was to establish the effect of non-interest income on the risk averseness ofcommercial banks in Kenya. The objectives of the study were to: establish the effect offoreign exchange trading income on the systemic risk, assess the effect of dividend incomeon the systemic risk of commercial banks in Kenya, establish the effect of deposit andtransaction fees and other account fees on the systemic risk and determine the effect offees and commissions income on loans and advances on the systemic risk. The studyadopted descriptive research design, the population for the study. The target populationfor the study comprised of 42 commercial banks in Kenya. Census sampling procedure wasused to sample all the 42 commercial banks in Kenya. Secondary data was collected usingdocumentary information from Banks annual accounts for the period 2010 to 2014. Datacollected was analyzed using inferential statistics and presentations made inform oftables. Data was analyzed using a multiple linear regression model. Results revealed thata strong relationship exist between foreign exchange trading income, divided income,deposit and transaction fee and fees and commissions on systemic risk of commercialbanks. The study found a positive relationship between foreign exchange trading income,divided income and fees and commissions on systemic risk of commercial banks. A 1%increase in foreign exchange trading to a 54% change in systemic risk, while a 1% increasein divided income leads to a 33.9% increase in return on equity and a 1% increase in feesand commissions leads to a 50.3% increase in return on equity. On the other hand, thestudy found a negative relationship between deposit and transaction fee and return onassets. This means that a 1% increase in deposit and transaction fee leads to a 20.2%decrease in return on asset of a firm. The study concluded that firms should lean towardsdeposit and transaction fee to manage the systemic risks. To realize increased systemicrisk by commercial banks in Rwanda, they should practice corporate diversification inorder to boost their income and grow their businesses. Corporate diversification acts as anextra source of income that the bank can harness and invest in capital projects. This helpscommercial banks to mitigate risks since it has many sources of income.
关键词：Foreign exchange trading; Dividend income; Deposit and transaction fee;fees and commission income on loans; systemic risk; Non-interest income
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