The Impact of Noninterest Income on Risk and Return of Government-Owned and Private Banks in Taiwan

  • 簡 伶軒

Student thesis: Doctoral Thesis

Abstract

This study examines the impact of noninterest income on risk and risk-adjusted return of government-owned and private banks in Taiwan Using quarterly data of all publicly issued banks in Taiwan from 2008 to 2018 including foreign banks which also issued in Taiwan we found three results First noninterest income is beneficial for risk-adjusted return of banking industry in Taiwan However noninterest income will also increase risk for banks at the same time Second examine the impact of noninterest income on government-owned and private banks We found that government-owned banks can generate more diversification beneficial than private banks Noninterest income can not only effectively reduce risks but also improve risk-adjusted return Although it also improves the return for private banks it will increase the risk of profitability volatility Finally we explore the relationship between noninterest and bank size after separate the data of two types of banks we found that larger government-owned banks with the higher noninterest income ratio will have better risk and return while private banks will small are better for it
Date of Award2019
Original languageEnglish
SupervisorTse-Shih Wang (Supervisor)

Cite this

'