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Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank >

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dc.contributor.authorBusch, Ramonaen_US
dc.contributor.authorKick, Thomasen_US
dc.date.accessioned2009-08-28en_US
dc.date.accessioned2009-09-09T12:00:46Z-
dc.date.available2009-09-09T12:00:46Z-
dc.date.issued2009en_US
dc.identifier.isbn978-3-86558-540-0en_US
dc.identifier.urihttp://hdl.handle.net/10419/27767-
dc.description.abstractIn the last few years it has been possible to observe decreasing interest margins for German universal banks. At the same time, institutions increasingly moved part of their business from interest to fee-earning activities. This study analyzes the determinants of non-interest income and its impact on financial performance and the risk profile of German banks between 1995 and 2007. We find empirical evidence that for all German universal banks risk-adjusted returns on equity and total assets are positively affected by higher fee income activities. Additionally, for commercial banks we show that a strong engagement in fee-generating activities goes along with higher risk. In order to analyze possible cross-subsidization effects between interest and fee business we also examine how banks' expansion in fee-based services has affected their interest margin. For savings and commercial banks we find that institutions with a strong focus on fee business charge lower interest margins when credit risk is controlled.en_US
dc.language.isoengen_US
dc.publisherDeutsche Bundesbank Frankfurt am Mainen_US
dc.relation.ispartofseriesDiscussion Paper Series 2: Banking and financial studies 2009,09en_US
dc.subject.jelG11en_US
dc.subject.jelG21en_US
dc.subject.jelG32en_US
dc.subject.ddc330en_US
dc.subject.keywordIncome diversificationen_US
dc.subject.keywordinterest incomeen_US
dc.subject.keywordfee incomeen_US
dc.subject.keywordinterest marginen_US
dc.subject.keywordtwo-stage least squares estimatoren_US
dc.subject.stwBankgeschäften_US
dc.subject.stwDiversifikationen_US
dc.subject.stwEinnahmenen_US
dc.subject.stwZinsen_US
dc.subject.stwHonoraren_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.titleIncome diversification in the German banking industryen_US
dc.typeWorking Paperen_US
dc.identifier.ppn607861940en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp2:200909-
Appears in Collections:Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank

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