The trade off between bank non interest income and net interest margins

Barry Williams, Gulasekaran Rajaguru

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

This study considers the time series relationship between bank non interest income and bank net interest margins in Australia using panel vector auto regressions. It is found that increases in bank non interest income are being used to supplement decreases in net interest margins, but that the magnitude of the increase in non interest income is smaller than the decrease in net interest margins. Thus, consumers of bank products are overall better off as a result of this process, but not necessarily every consumer group. The agency risks of increased bank non interest income are explored from the perspectives of regulators, bank
shareholders, borrowers and bank management.
Original languageEnglish
Pages1-31
Number of pages31
Publication statusPublished - 2007
EventAccounting and Finance Association of Australia and New Zealand Conference - Gold Coast, Gold Coast, Australia
Duration: 1 Jul 20073 Jul 2007

Conference

ConferenceAccounting and Finance Association of Australia and New Zealand Conference
Abbreviated titleAFAANZ Conference
CountryAustralia
CityGold Coast
Period1/07/073/07/07

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Trade-offs
Non-interest income
Interest margin
Vector autoregression
Bank management
Bank relationships

Cite this

Williams, B., & Rajaguru, G. (2007). The trade off between bank non interest income and net interest margins. 1-31. Paper presented at Accounting and Finance Association of Australia and New Zealand Conference, Gold Coast, Australia.
Williams, Barry ; Rajaguru, Gulasekaran. / The trade off between bank non interest income and net interest margins. Paper presented at Accounting and Finance Association of Australia and New Zealand Conference, Gold Coast, Australia.31 p.
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Williams, B & Rajaguru, G 2007, 'The trade off between bank non interest income and net interest margins' Paper presented at Accounting and Finance Association of Australia and New Zealand Conference, Gold Coast, Australia, 1/07/07 - 3/07/07, pp. 1-31.

The trade off between bank non interest income and net interest margins. / Williams, Barry; Rajaguru, Gulasekaran.

2007. 1-31 Paper presented at Accounting and Finance Association of Australia and New Zealand Conference, Gold Coast, Australia.

Research output: Contribution to conferencePaperResearchpeer-review

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Williams B, Rajaguru G. The trade off between bank non interest income and net interest margins. 2007. Paper presented at Accounting and Finance Association of Australia and New Zealand Conference, Gold Coast, Australia.