Non-Core Banking, Performance, and Risk

Item Type Monograph (Working Paper)
Abstract

One of the most dramatic trends in banking since 2000 has been the secular movement away from core banking and interest generating activities towards enhanced reliance on non-interest-generating activities that focus largely on fees and trading profits. This has changed the banking model from traditional asset formation, such as deposit taking and lending, towards a model built on fees and non-banking activities. In this paper, we draw on a dataset covering over 10,000 US banks and 542 bank holding companies and find no evidence that this shift in the bank business model harms bank profitability and / or increases failure rates, idiosyncratic risk, or systemic risk.

Authors Saunders, Anthony; Schmid, Markus & Walter, Ingo
Language English
Keywords Core-Banking Activity, Non-traditional Income, Bank Size, Financial Crises, Systemic Risk
Subjects business studies
economics
finance
HSG Classification contribution to scientific community
Refereed No
Date October 2014
Publisher SoF - HSG
Place of Publication St. Gallen
Series Name School of Finance Working Paper Sieres
Number 2014/17
Depositing User Prof. Dr. Markus Schmid
Date Deposited 06 Nov 2014 10:32
Last Modified 29 Jan 2018 08:35
URI: https://www.alexandria.unisg.ch/publications/236531

Download

[img]
Preview
Text
14_17_Schmid et al_Non-Core Banking, Performance, and Risk.pdf

Download (2MB) | Preview

Citation

Saunders, Anthony; Schmid, Markus & Walter, Ingo: Non-Core Banking, Performance, and Risk. School of Finance Working Paper Sieres, 2014, 2014/17.

Statistics

https://www.alexandria.unisg.ch/id/eprint/236531
Edit item Edit item
Feedback?