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  • 2020 Banks' Non-Interest Income Authors Name

    Accepted author manuscript, 450 KB, PDF document

    Embargo ends: 4/05/22

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Using a sample of 440 Italian banks over the period 2007–2016, we find that low interest rates motivate banks to expand their fee and commission income and to restructure their securities portfolios. A granular breakdown suggests that banks grow noninterest income in various ways, including portfolio management, brokerage and consultancy services and increase fee income from current account and payment services. In addition, banks rebalance securities portfolios away from those “held for trading” to securities “available for sale” and “held to maturity.” Our findings allude to different behavior between large and small banks: while larger banks increase brokerage, consultancy and portfolio management services, smaller banks generate fees from customer current accounts.

Keywords

  • Fee and Commission Income, Securities, Low interest rates, Unconventional monetary Policy, Italian Banking Sector
Original languageEnglish
JournalEuropean Financial Management
Early online date4 May 2020
Publication statusE-pub ahead of print - 4 May 2020
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