How do banks make money? the fallacies of fee income

Robert DeYoung and Tara N. Rice

Economic Perspectives, 2004, vol. 28, issue Q IV, 34-51

Abstract: In the first of two articles in this issue, the authors document the increasing importance of noninterest income at U.S. commercial banking companies and address two fundamental misunderstandings regarding this trend: the belief that fee-based activities provide more stable earnings than interest-based income and the belief that fee income flows chiefly from nontraditional, nonbanking activities.

Keywords: Income; Money; Payment systems (search for similar items in EconPapers)
Date: 2004
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