Background:The objective of this paper is threefold.First,we test the most important factors that determine the level of non-interest income for Tunisian banks.Second,we study the impact of non-interest income on bank...Background:The objective of this paper is threefold.First,we test the most important factors that determine the level of non-interest income for Tunisian banks.Second,we study the impact of non-interest income on banks’profitability measured by both return on assets(ROA)and return on equity(ROE).Finally,we investigate the relationship between non-interest income and the level of risk taking.Methods:To achieve this goal,we used annual data of 20 Tunisian banks during the period 2005-2012.In the empirical section we performed a Dynamic Panel Data model.Results:Empirical results indicate that the main determinants of non-interest income are:relative performance(RROA and RROE),bank size,loan specialization and new epayments channels,automatic teller machine(ATM)and credit cards.We also find that diversification increases bank performance for both ROA and ROE measures.Eventually,non-interest income appears to be negatively and significantly correlated with the effect on the level of risk.Conclusions:Tunisian banks are invited to more diversify their activities and do not focus only on the traditional activity.The noninterest income seems to be associated with a higher level of profitability and a lower risk.展开更多
文摘Background:The objective of this paper is threefold.First,we test the most important factors that determine the level of non-interest income for Tunisian banks.Second,we study the impact of non-interest income on banks’profitability measured by both return on assets(ROA)and return on equity(ROE).Finally,we investigate the relationship between non-interest income and the level of risk taking.Methods:To achieve this goal,we used annual data of 20 Tunisian banks during the period 2005-2012.In the empirical section we performed a Dynamic Panel Data model.Results:Empirical results indicate that the main determinants of non-interest income are:relative performance(RROA and RROE),bank size,loan specialization and new epayments channels,automatic teller machine(ATM)and credit cards.We also find that diversification increases bank performance for both ROA and ROE measures.Eventually,non-interest income appears to be negatively and significantly correlated with the effect on the level of risk.Conclusions:Tunisian banks are invited to more diversify their activities and do not focus only on the traditional activity.The noninterest income seems to be associated with a higher level of profitability and a lower risk.
