Non Interest Incomes Impact on the Profitability of kenyas Commerecial Banks
Author(s)
Download Full PDF Pages: 01-08 | Views: 262 | Downloads: 78 | DOI: 10.5281/zenodo.8109543
Abstract
Noninterest income creates income by ensuring the viability of banks in the event of nonpayment of interest income. Noninterest income includes income from property rentals, asset sales, and service fees. It is unaffected by financial market cycles and the economy as they are not subject to interest rate laws and regulations. Commercial banks' primary responsibility is to act as a conduit between its clients and available financial aid. Financial institutions distribute money received from investors and borrowers in a planned way that benefits all parties. In this way, the productivity of the entire economy is greatly increased by commercial organizations.
Keywords
Non Interest Income's, Commerecial Banks
References
Adeusi, S. O., Kolapo, F. T. & Aluko, A. O. (2014). Determinants of Commercial Banks’ Profitability Panel Evidence from Nigeria. International Journal of Economics, Commerce and Management, 2(12), 1-18
Alkhazaleh, A. M. & Almsafir, M. (2014). Bank Specific Determinants of Profitability in Jordan. Journal of Advanced Social Research, 4(10), 01-20
Ally, Z. (2014). Determinants of Banks’ Profitability in a Developing Economy: Empirical Evidence from Tanzania. European Journal of Business and Management, 6 (31), 363 – 375
Amankwaa, A., Anku-Tsede, O. & Senyo, B. (2014). Analysis of Non-Interest Income of Commercial Banks in Ghana. International Journal of Academic Research in Accounting, Finance and Management Sciences Vol.4, No. 4, ISSN: 2225-8329.
Anyanzwa, J. (2017). Interest rate caps eat into Kenya banks’ profits. The East African. Retrieved 17 August 2017, from http://www.theeastafrican.co.ke/business/Interest-rate-caps-eat-into-Kenya-banks-profits--/2560-3843916-9c7bdl/index.html
Baddeley, M. & Barrowclough, D. (2012). Running Regressions: A Practical Guide to Quantitative Research in Economics, Finance and Development Studies. Cambridge: Cambridge University.
Berger. A., Hasan, I., Korhonen, I., & Zhou. M. (2010). Does Diversification Increase Or Decrease Bank Risk And Performance? Evidence on Diversification and the Risk- Return Tradeoff in Banking. Bank of Finland, Institute for Economies in Transition Discussion Paper, 9.
Barnes,S.J.(2003).Enterprise mobility:Concepts and examples.International Journal of Mobile Communications, 1(4), 341-359.
Baltagi, B.H. (2005). Econometric Analysis of Panel Data. England: John Wiley and Sons Ltd, the Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ.
Baum, C. F. (2006). An Introduction to Modern Econometrics Using Stata. College Station, TX: Stata Press.
Burns, N., & Grove, S. K. (2010). Understanding Nursing Research: Building an Evidence-BasedPractice. Maryland: Elsevier Health Sciences
CBK (2012). Annual supervision report. 1174296311_2012 Annual Report.
CBK (2019). Annual supervision report. 197965474_BSDAnnualreport2019.
CBK (2020). Annual supervision report. 468154612_2020 Annual Report.
Chiang, L.C., Shih-Jui, Y., & Chi-Hung, C. (2014). Non-interest income,profitability, and risk in banking industry: A cross-country analysis. Economy. Université de Limoges, LAPE, 5 rue Félix Eboué, BP 3127, 87031.
Choi, I. (2001). Unit Root Tests for Panel Data. Journal of International Money and Finance, 20,249-272
Cooper, D.R., & Schindler, P.S. (2011). Business Research Methods, 11th, edition. McGraw-Hill Publishing, Co. Ltd. New Delhi-India.
Cooper, D.R., & Schindler, P.S. (2017). Business Research Methods, 11th, edition. McGraw-Hill Publishing, Co. Ltd. New Delhi-India.
Creswell, W. J. (2014). Research Design, Qualitative,Quantitative and Mixed Method Approaches.(4th Edition). New York: Sage Publication.
Dawson, C. (2009). Introduction to Research Methods: A practical guide for anyoneundertakingb a research project. How to Books Ltd, 3 Newtec Place, United Kingdom.
DeYoung, R.; Roland, K.P. (2001). Product Mix and Earnings Volatility at Commercial Banks: Evidence from a Degree of Total Leverage Model. Journal of Financial Intermediation.
Galvao, A. F., Montes-Rojas, G., Sosa-Escudero, W., & Wang, L. (2013). Tests for Skewness and Kurtosis in the One-Way Error Component Model. Journal of Multivariate Analysis, 122, 35-52.
Gujarati, D. (2003). Basic Econometrics. (4th Edition). New York: McGraw Hill.
Hakim, C. (2000). Research Design: Successful Designs for Social & Economic Research. (2nd Ed.) London: Routledge.
Kiganda, E.O. (2014). Effect of macroeconomic factors on commercial banks profitability in Kenya: Case of equity bank limited. Journal of Economics and Sustainable Development, 5(2), 46-56.
Köhler, M., Düllmann, K., Herrmann, H. & Memmel, C. (2013). Does non-interest income make banks more risky? ISBN 97838 65589156 Kothari, C.R. (2004). Research methodology methods and techniques (Revised 2nd edition). New Delhi, India: New Age international publishers.
Kombo, D.K., & Tromp, D.L.A. (2009). Proposal and Thesis Writing: An Introduction. Paulines Publications Africa, Don Bosco Printing Press, Nairobi Kenya
Kothari, C.R. (2004). Research methodology methods and techniques (Revised 2nd edition). New Delhi, India: New Age international publishers.
Lavrakas, P. (2008). Encyclopedia of Survey Research Methods Vol. 1 & 2. Sage Publications, Los Angeles, United States of America.
Lempert, R. (1966). Strategies of Research Design in the Legal Impact Study: The Control of Plausible Rival Hypotheses. Law and Society Review, 1, 111-132.
Lipunga, A. M. (2014). Determinants of Profitability of Listed Commercial Banks in Developing Countries: Evidence from Malawi. Research Journal of Finance and Accounting, 5(6), 41-49
Malhotra, N. (2007). Marketing Research: Unapplied Orientation, (5thed.), PHI, New Delhi: Pearson Education Australia.
Miles, M. B., & Huberman, M. A. (1994). Qualitative Data Analysis: An Expanded Sourcebook (second ed.). Beverley Hills: Sage
Mokaya, M. A., & Jagongo, A. (2014). Corporate Loan Portfolio Diversification and Credit Risk Management among Commercial Banks in Kenya.
Montgomery, C. A. (1994). Corporate Diversification. Journal of Economic Perspectives, 8(3), 163-178.
Miller, G. J., & Yang, K. (2008). Handbook of Research Methods in Public Administration. New York: Auerbach Publications, Taylor & Francis Group Modell.
Mugenda, O.M. & Mugenda, A.G. (2003). Research Methods,Quantitative & Qualitative Approaches, Acts Press, Nairobi.
Ngechu. M. (2008). Understanding the research process and methods. An introduction to research methods. Acts Press, Nairobi.
Ngugi, R. W. and Kabubo, J. W. (1998). Financial Sector Reforms and Interest Rates Liberalization: The Kenyan Experience, African Economic Research Consortium.
Njagi, J. W. (2013). Contributions of Agency Banking on Financial Performance of Commercial Banks in Kenya. Unpublished MBA Project. Kenyatta University
Niresh, A.; Velnampy, T. (2014). Firm Size and Profitability: A Study of Listed Manufacturing Firms in Sri Lanka. International Journal of Business and Management; Vol. 9, No. 4; 2014
Ng'endo, K. (2012). The relationship between non-interest income and financial performance of commercial banks in Kenya. October 2012
Njenga, E. (2014). Determinants of non-interest income in Kenya’s commercial banks. Unpublished MBA project, Kenyatta University
Oniang’o, R., (2015). Effect of Non-Interest Income on Profitability of Commercial Banks in Kenya. MBA Thesis University of Nairobi.
Ogboi, C., & Unuafe, O. K. (2013). Impact of Credit Risk Management and Capital Adequacy on the Financial Performance of Commercial Banks in Nigeria. Journal of Emerging Issues in Economics, Finance and Banking, 2(3), 703-717.
O’Neill, W. (2000). Fundamentals of the Stock Market. Black click, OH, USA: McGraw-Hill Professional Book Group.
Olweny, T. & Shipho, T.M. (2010). Effects of Banking Sectoral Factors on the Profitability of Commercial Banks in Kenya’, Economics and Finance Review 1(5), 01-30.
Polit, D., & Beck, C. (2003). Nursing Research: Principles & Methods, 7th Edition, Lippincott, and Williams & Wilkins, United States of America.
Poi, B., & Wiggins, V. (2001). Testing For Panel-Level Heteroskedasticity and Autocorrelation. Stata Corp LP. Retrieved from http://www.stata.com! support/faq s/stat/panel.html.
Reichel, M., & Ramey, M. A. (1987). Conceptual frameworks for bibliographic education. Theory to practice. Litleton, Colorado: Libraries Unlimited Inc.
Richey, Rita, & James D. (2007). Design and Development Research: Methods, Strategies, and Issues. Mahwah, N.J: L. Erlbaum Associates. Print.
Saeed, M. (2010). Determination of Disruption Factors in Oil Supply Chain. Open University, Malaysia.
Saunders, A. (1999). Financial institutions management: Modern Perspective, 3rd Edition, Irwin McGraw Hill.
Smyth, R. (2004). Exploring the usefulness of a conceptual framework as a research tool: A researcher’s reflection. Issues In Education Research, 14(2), 167-180.
Stiroh, K. J. (2004). Do Community Banks Benefit from Diversification? Journal of Financial Economics, 25(2/3), 135
Teimet, R., Lishenga, J., Iraya, M., & Duncan, E. (2019). The Effect of Bank Size on Profitability of Commercial Banks in Kenya. International Journal of Economics, Commerce and Management, 7(12), 202-216.
Were, M., &, Wambua, J. (2014). What factors drive interest rate spread of commercial banks?Empirical evidence from Kenya. Volume 4, Issue 2, Developments in the Financial Services Sector in Africa.
William, S. (1964). The capital asset pricing model: Theory and evidence. 1964
Williams, B., (2014). The Impact of non-interest Income on Bank Risk in Australia. Social science research network
Wooldridge, J.M. (2012).Econometric Analysis of Cross Section and Panel Data.MIT Press. World Bank (2017). Country Overview, Kenya. Retrieved from http://www.worldbank.org/en/country/kenya/overview
Wright, R. E. (2001). Origins of Commercial Banking in America. 1750-1800.
Zikmund, G.W., Babin, B.J., Carr, C.J. & Griffin, M. (2010). Business Research Methods 8th ed. South-Western, Cengage Learning 222
Cite this Article: