Noninterest Income and Financial Performance in the Mexican Banking Industry

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dc.description.abstract This paper analyzes the determinants of noninterest income and their impact on the performance of the Mexican banking system from 2000 to 2014. The analysis seeks to identify empirical links between noninterest income, bank characteristics, market conditions, and technological changes. It also seeks to determine how noninterest income affects the performance of banking institutions, when controlled by market conditions and technological development. The econometric analysis reveals that noninterest income depends mainly on the composition and size of the loan portfolio and the size of the bank. In the same way, growth in fee-generating activities increases bank returns, along with higher risk. Considering the trade-off between risk and returns, a marginal increase of noninterest income increases risk proportionally less than returns. Additionally, the relationship between fee-based income and interest margin is revised to look for cross-subsidization effects. The analyses find that an expansion in fee-based income is followed by an increase in interest margins, after controlling for credit risk. en
dc.title Noninterest Income and Financial Performance in the Mexican Banking Industry en
dc.contributor.author Guerrero Mora, Rodolfo
dc.date.accessioned 2015-10-15T18:46:23Z
dc.date.available 2015-10-15T18:46:23Z
dc.date.issued 2015-10-15
dc.identifier.uri http://hdl.handle.net/123456789/53121
lacea.language.supported en
dc.description Working paper
dc.language.iso en
dc.subject Noninterest Income
dc.subject Banking Characteristics
dc.subject Panel Data
dc.subject Mexico
dc.type Working Paper

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