| Summary: | 碩士 === 國立高雄大學 === 金融管理學系碩士班 === 100 === Banks are not only easing a decree of financial markets but increasing competition between financial institutions and non-financial institutions. De Young and Rice（2004）indicated that the traditional business can provide a fixed and stable amount of customer and take advantage of these customers and cross-sell other non-traditional business goods. Therefore, the correlation between non-interest incomes and interest incomes does affect bank performance. The objective of this study is to provide empirical evidence between income correlation and performance. Furthermore, this study examines the relationship between income correlation and bank performance under the conditions of corporate governance, income diversification and banking regulations. The samples are commercial banks, cooperative banks, savings banks in 81 countries from 2004 to 2010.
The results show that the correlation has a positive impact on bank performance. The empirical evidence supports the assertion of De Young and Rice (2004). Furthermore, in addition to the revenue diversification and sound corporate governance, higher revenue correlation improves bank performance. In the countries with higher official supervisory power and activity constrains, banks with higher revenue correlation perform worse.
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