Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/209904 
Year of Publication: 
2008
Series/Report no.: 
Working Paper No. 2008/13
Publisher: 
Norges Bank, Oslo
Abstract: 
The banking literature contains only a handful of studies of how bank revenues vary over the business cycle, and nearly all of these studies look exclusively on the net interest margin. The general conclusion has been that the margin tends to increase during recessions and decrease during booms. In this paper we study the effect of macroeconomic variables on the operating income in the Norwegian banking sector. We contribute to the existing literature by looking at how net interest income as well as fee income varies over the cycle in an error correction framework, which allows us to identify both short term and long term relationships. Our paper also differs from most previous studies by taking into account the volume effect as well as the price effect of the business cycle.
Subjects: 
bank operating income
business cycles
JEL: 
G21
E32
Persistent Identifier of the first edition: 
ISBN: 
978-82-7553-451-2
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper
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