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
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 20 Jul 2022 17:22


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

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