The impact of fee income share on EU banks' performance and its implications for drivers of banks' business model changes

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F20%3A10411422" target="_blank" >RIV/00216208:11230/20:10411422 - isvavai.cz</a>

Výsledek na webu

<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=VY3FjRmZk2" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=VY3FjRmZk2</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.pep.720" target="_blank" >10.18267/j.pep.720</a>

Jazyk výsledku

angličtina

Název v původním jazyce

The impact of fee income share on EU banks' performance and its implications for drivers of banks' business model changes

Popis výsledku v původním jazyce

This paper contributes to the current literature dealing with drivers of bank business model changes. Weanalyse the relationship between fee and commission income share and banks&apos; performance in terms of profitability, risk and risk-adjusted profitability in the European Union. We applied the System Generalized Method of Moments to a unique data set of 329 EU banks in the period 2005-2014, which resulted in three key findings. First, we did not find any diversification benefits by increasing the fee income share. Therefore, we can conclude that the increase in fee income share observed in recent years in EU banks was driven mainly by external factors, such as increased competition, rather than by internal reasons. Second, higher reliance on equity financing and better quality of provided loans enhance banks&apos; performance. Third, bank business strategies and macroeconomic factors are crucial determinants of banks&apos; performance.

Název v anglickém jazyce

The impact of fee income share on EU banks' performance and its implications for drivers of banks' business model changes

Popis výsledku anglicky

This paper contributes to the current literature dealing with drivers of bank business model changes. Weanalyse the relationship between fee and commission income share and banks&apos; performance in terms of profitability, risk and risk-adjusted profitability in the European Union. We applied the System Generalized Method of Moments to a unique data set of 329 EU banks in the period 2005-2014, which resulted in three key findings. First, we did not find any diversification benefits by increasing the fee income share. Therefore, we can conclude that the increase in fee income share observed in recent years in EU banks was driven mainly by external factors, such as increased competition, rather than by internal reasons. Second, higher reliance on equity financing and better quality of provided loans enhance banks&apos; performance. Third, bank business strategies and macroeconomic factors are crucial determinants of banks&apos; performance.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50201 - Economic Theory

Projekt

<a href="/cs/project/GA18-05244S" target="_blank" >GA18-05244S: Inovativní přístupy k řízení úvěrových rizik</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Prague Economic Papers

ISSN

1210-0455

e-ISSN

—

Svazek periodika

29

Číslo periodika v rámci svazku

2

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

23

Strana od-do

226-248

Kód UT WoS článku

000527253200005

EID výsledku v databázi Scopus

2-s2.0-85085509353