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dc.contributor.authorJaffar, Kalsoomen_UK
dc.contributor.authorMabwe, Kumbiraien_UK
dc.contributor.authorWebb, Roberten_UK
dc.description.abstractThe UK banking industry has steadily moved from the traditional role of financial intermediation and is increasingly relying on non-traditional business activities that generate fee income, dealings profit and other types of noninterest income. Using the dataset of large British Banks for the period 1986-2012, this study investigates the changes in the bank income structure as a result of the 1986 deregulation and tease out the effect that these changes have had in relation to systemic risk. On a micro analysis, larger banks are more able to sustain high levels of noninterest income. Among the banks Lloyds and HSBC stand out as the major players in noninterest income generation. At aggregate level while interest income reflects a stable trend, we find a significant upward but slightly volatile trend in noninterest income for the period 1999-2008 before a sharp downturn induced by the financial crisis. This paper argues that in terms of financial stability, the banks’ greater reliance on noninterest income particularly commission income is associated with higher systemic risk. This study has shown that there is a positive correlation between interest income and non-interest income for the five banks.en_UK
dc.publisherMacrothink Institute, Inc.en_UK
dc.relationJaffar K, Mabwe K & Webb R (2014) Changing Bank Income Structure: Evidence from Large UK Banks?. Asian Journal of Finance & Accounting, 6 (2), pp. 195-215.
dc.rightsCopyrights for articles published in our journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.en_UK
dc.subjectInterest incomeen_UK
dc.subjectNon-interest incomeen_UK
dc.subjectTraditional bankingen_UK
dc.subjectDeregulation diversificationen_UK
dc.subjectbank stabilityen_UK
dc.titleChanging Bank Income Structure: Evidence from Large UK Banks?en_UK
dc.typeJournal Articleen_UK
dc.citation.jtitleAsian Journal of Finance and Accountingen_UK
dc.type.statusVoR - Version of Recorden_UK
dc.contributor.funderUniversity of Nottinghamen_UK
dc.contributor.affiliationGlasgow Caledonian Universityen_UK
dc.contributor.affiliationGlasgow Caledonian Universityen_UK
dc.contributor.affiliationUniversity of Nottinghamen_UK
Appears in Collections:Accounting and Finance Journal Articles

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