The relationship between net interest margin and noninterest income using a system estimation approach 采用系统估计方法研究净息差与非利息收入的关系.pdfVIP

Journal of Banking Finance 36 (2012) 2429–2437 Contents lists available at SciVerse ScienceDirect Journal of Banking Finance journal homepag e: www.elsevier.c om/locate/jbf The relationship between net interest margin and noninterest income using a system estimation approach James Nguyen ⇑ Johnson C. Smith University, 100 Beatties Ford Dr., Charlotte, NC 28216, USA a r t i c l e i n f o a b s t r a c t Article history: This paper examines the determinants of bank net interest margin (NIM) and non-traditional banking Received 24 February 2009 activities (NII). A system estimation approach is employed to control for the simultaneity between Accepted 20 April 2012 NIM and NII for commercial banks in a group of 28 financially liberalized countries during the period Available online 30 April 2012 between 1997 and 2004. We find a statistically significant negative relationship between NIM and NII for the period between 1997 and 2002. A generally positive but statistically insignificant association JEL classification: between NIM and NII is found for the subsequent period (2003–2004). Banks’ increasing involvement D40 in non-traditional activities is negatively correlated with risk-adjusted profitability measures in the for- G20 G21 mer subperiod, suggesting no obvious diversification benefits.