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

Barry Williams; Gulasekaran Rajaguru

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

Bond Business School

Research output: Contribution to conference › Paper › Research › peer-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 language	English
Pages	1-31
Number of pages	31
Publication status	Published - 2007
Event	Accounting and Finance Association of Australia and New Zealand Conference - Gold Coast, Gold Coast, Australia Duration: 1 Jul 2007 → 3 Jul 2007

Conference

Conference	Accounting and Finance Association of Australia and New Zealand Conference
Abbreviated title	AFAANZ Conference
Country/Territory	Australia
City	Gold Coast
Period	1/07/07 → 3/07/07

Cite this

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title = "The trade off between bank non interest income and net interest margins",

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, bankshareholders, borrowers and bank management. ",

author = "Barry Williams and Gulasekaran Rajaguru",

year = "2007",

language = "English",

pages = "1--31",

note = "Accounting and Finance Association of Australia and New Zealand Conference, AFAANZ Conference ; Conference date: 01-07-2007 Through 03-07-2007",

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AU - Rajaguru, Gulasekaran

PY - 2007

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N2 - 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, bankshareholders, borrowers and bank management.

AB - 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, bankshareholders, borrowers and bank management.

M3 - Paper

SP - 1

EP - 31

T2 - Accounting and Finance Association of Australia and New Zealand Conference

Y2 - 1 July 2007 through 3 July 2007

ER -

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

Abstract

Conference

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