The Effects of Non-interest Income Diversification on the Riskiness and Profitability of Commercial Banks
This study examines whether diversification is beneficial to commercial banks using data of U.S., Europe and Asia banks from 1997 to 2003. The empirical results suggest that banks perform better if they diversify between interest and non-interest activities, but this effect is not significant when...
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| Language: | 英文 |
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國立政治大學
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| Online Access: | http://thesis.lib.nccu.edu.tw/cgi-bin/cdrfb3/gsweb.cgi?o=dstdcdr&i=sid=%22G0923570211%22. |
| Summary: | This study examines whether diversification is beneficial to commercial banks using data of U.S., Europe and Asia banks from 1997 to 2003. The empirical results suggest that banks perform better if they diversify between interest and non-interest activities, but this effect is not significant when banks diversify within each of these broad sets of activities. Regional results point out the different effects of commercial banks in U.S., Europe and Asia. My results show that banks earn less risk-adjusted returns from commission, fee and trading income. We conclude that increasing non-interest shares is not as good as expected. |
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