ORCID Profile
0000-0001-8751-1003
Current Organisation
Monash University
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Publisher: Elsevier BV
Date: 06-2017
Publisher: Informa UK Limited
Date: 09-1996
Publisher: SAGE Publications
Date: 10-04-2012
Abstract: This study considers the time series relationship between bank fee income and bank net interest margins in Australia, applying panel vector autoregressions to a unique, hand-collected dataset. Increases in bank fee income are being used to supplement decreases in net interest margins. The increase in magnitude of fee income associated with reductions in margin income is smaller than the decrease in net interest margins, resulting in a net wealth transfer favouring users of bank services although not all users of bank services gained and/or gained equally. The overall increase in fee income is marginally greater that the reduction in margin income. It is argued that banks have responded to falling margin revenue by increasing their range of fee-based services, especially insurance. Increases in fee income are found to pre-date declines in margin income, thus Australian banks were pro-active in the process of disintermediation. JEL Classifications: G21, G11, C33
Publisher: Emerald
Date: 29-06-2010
DOI: 10.1108/17439131011056233
Abstract: The purpose of this paper is to consider the impact on bank risk of portfolio ersification between traditional margin income and fee‐based income for banks operating in Australia. Considering several performance variables, this analysis compares the benefits of ersification across different bank types relative to margin income and fee income. Further, regression analysis considers bank risk and revenue concentration. This paper documents that fee‐based income is riskier than margin income but offers ersification benefits to bank shareholders. While improving bank risk‐return tradeoff, these benefits are of second order importance compared to the large negative impact of poor asset quality on shareholder returns. These results have implications for all stakeholders in Australian banks. The results suggest that shareholders of banks will benefit from increased bank exposure to non‐interest income via ersification. From a regulatory perspective, ersification reduces the possibility of systemic risk, but caution must be offered with respect to banks pursuing absolute returns rather than monitoring risk‐return trade‐offs, and so exploiting the benefits of the implied guarantee offered by “too big to fail” However, shareholders should also monitor bank exposure to non interest income to ensure that they do not become over‐exposed to the point where the volatility effect outweighs the ersification benefits. The results of this study suggest that Australian regulators should consider requiring increased disclosure of the composition of bank non‐interest income. Such disclosure would aid in understanding the changing nature of banking in Australia. Given the recent sub‐prime crisis in the USA and the role played by fee based income sourced from securitization, increased disclosure of the nature of bank non interest income is now of global importance. This disclosure is particularly germane within the context of the implementation of Basle II, with its increased emphasis upon market discipline, given that Stiroh found increased disclosure in this area is accompanied by improved market pricing for risk.
Publisher: Elsevier BV
Date: 07-2004
Publisher: Elsevier BV
Date: 06-2003
Publisher: Wiley
Date: 03-1997
Publisher: Elsevier BV
Date: 07-2010
Publisher: Emerald
Date: 16-01-2009
DOI: 10.1108/03074350910923509
Abstract: The purpose of this paper is to explore the factors that affect differences in measured efficiency of foreign‐owned banks operating in Australia. The relevance of both comparative advantage theory and new trade theory to multinational banking in Australia will be tested. A three stage research method is employed. First, estimates of foreign bank efficiency are drawn from a larger s le of domestic and foreign banks in Australia. Efficiency is estimated using parametric distance functions, applying several different specifications of inputs and outputs. Second, factor analysis is used to estimate a series of common factors drawn from the above theories. Third, general to specific modelling is used to determine which of the factors from the second stage determine differences in foreign bank efficiency. Following clients (defensive expansion) was found to increase host nation efficiency, and new trade theory tended to, (but not conclusively), dominate comparative advantage theory. The limited global advantage hypothesis was found to apply for US bank revenue creation efficiency, but not for transformation of physical inputs into outputs. Banks from the UK and Japan were also found to display superior revenue creation efficiency. Competitor market share reduces host nation efficiency and positive parent bank attributes such as size, credit rating and profits are associated with lower host nation efficiency, as is home nation financial development. This is the first study that has used a combination of factor analysis and general to specific modelling to study determinants of foreign bank efficiency in the host nation.
Publisher: Informa UK Limited
Date: 05-2013
Publisher: Elsevier BV
Date: 11-2008
Publisher: Elsevier BV
Date: 12-2016
No related grants have been discovered for Barry Williams.