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Banks' pricing strategies and income diversification: Theoretical and empirical evidence

Başlık çevirisi mevcut değil.

  1. Tez No: 402757
  2. Yazar: CANER GEREK
  3. Danışmanlar: DR. MOHAMMED SHABAN, PROF. MERYEM DUYGUN
  4. Tez Türü: Doktora
  5. Konular: İşletme, Bankacılık, Business Administration, Banking
  6. Anahtar Kelimeler: Belirtilmemiş.
  7. Yıl: 2016
  8. Dil: İngilizce
  9. Üniversite: Unıversıty Of Leıcester
  10. Enstitü: Yurtdışı Enstitü
  11. Ana Bilim Dalı: Belirtilmemiş.
  12. Bilim Dalı: Belirtilmemiş.
  13. Sayfa Sayısı: Belirtilmemiş.

Özet

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Özet (Çeviri)

This thesis makes three different contributions to the literature on bank income diversification and its effect on bank performance. Firstly, the study makes a theo- retical contribution by incorporating non-interest income components into Ho and Saunders (1981) model in the presence of pricing strategies, including bundling and loss-leader strategies, as well as being well-informed and less-informed customers. The model distinguishes fees and commissions income and trade income by propos- ing the conditions that create the negative relationships with net interest margin. The study also empirically tests the theoretical relationships for the European bank- ing system and the results state that both fees and commissions income and trade income negatively affect interest margin. Secondly, this study examines the relationship between interest and non-interest income sides by considering the switching cost for customers created by loan ma- turity for non-interest products. Theoretically, the study derives an equation that long-term loans create a switching cost for the sale of non-traditional products. The theoretical contribution is empirically tested for the UK banking system using unique UK banking data over the period 2005 - 2012. The empirical results suggest that by shifting loan maturity from short term to long term creates a switching cost for non-interest product sale. This empirical finding leads to test switching cost created by long-term loan, particularly for trade products. Shifting the maturity from short term to long term creates switching cost for trade products either. Thirdly the study contributes by investigating the aftermath of findings on the relationship between interest and non-interest income sides, and switching cost cre- ated by increasing loan maturity. The third study in this thesis contributes to the literature by examining the effect of non-interest income, conditional on deposit and loan maturities, on bank performance using UK banking data as a laboratory from 2005 to 2012. The study finds that fees and commissions income do not explain bank performance. However, when the fees and commissions variables are conditional on longer loan maturity, it alleviates the risk-adjusted bank performance. Trade in- come increases the bank performance. However when it is dependent on deposits and loans with long maturities, it has an adverse effect on bank performance. The result of direct maturity diversification indicates that, while the UK banks do not benefit from deposit diversification, the maturity diversification of loan is linked to a higher bank performance.

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