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dc.contributor.authorAbedifar, Pejman
dc.contributor.authorMolyneux, Philip
dc.contributor.authorTarazi, Amine
dc.identifier.citationAbedifar , P , Molyneux , P & Tarazi , A 2018 , ' Non-interest income and bank lending ' , Journal of Banking & Finance , vol. 87 , pp. 411-426 .
dc.identifier.otherPURE: 251522689
dc.identifier.otherPURE UUID: ad0b6220-2fa3-4b5f-acf0-feedf62d33ba
dc.identifier.otherRIS: urn:40A9EADBDCF8532BFD277C5D05490F10
dc.identifier.otherScopus: 85034047478
dc.identifier.otherWOS: 000425204100027
dc.identifier.otherORCID: /0000-0002-7648-7201/work/64361302
dc.description.abstractThis paper examines the influence of non-interest activities on bank lending in terms of loan quality and interest spread. We also investigate the possible existence of profit complementarities between non-interest activities and lending. Using quarterly data on 6,921 U.S. commercial banks between 2007:Q3 to 2016:Q3 we find that non-interest activities have no adverse influence on bank credit risk. This is the case for banks of different asset size (including systemically important banks) as well as for distressed banks. There is evidence that banks with assets between $100 million and $1 billion that have a greater share of fiduciary income have lower credit risk. They also have lower interest rates on loans secured by real estate, and higher franchise values, particularly post-crisis. Moreover, banks in the aforementioned size range benefit from synergies in joint production of non-interest income and lending, whereas other banks, in particular smaller banks (below $100 million in assets) suffer from diseconomies of joint production. Larger banks exhibit cross-subsidization between several non-interest activities and lending business.
dc.relation.ispartofJournal of Banking & Financeen
dc.rights© 2017 Elsevier Ltd. This work has been made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at
dc.subjectNon-interest Incomeen
dc.subjectCredit risken
dc.subjectProfit complementaritiesen
dc.subjectHB Economic Theoryen
dc.subjectHG Financeen
dc.titleNon-interest income and bank lendingen
dc.typeJournal articleen
dc.contributor.institutionUniversity of St Andrews.School of Managementen
dc.contributor.institutionUniversity of St Andrews.Centre for Responsible Banking and Financeen
dc.description.statusPeer revieweden

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