Niskie stopy procentowe a zmiana struktury dochodów banków w krajach UE

Sylwester Kozak

doi:10.17951/h.2018.52.1.97

Abstract

The relaxed monetary policy of central banks conducted after the global financial crisis has led to the establishment of zero or even negative interest rates. Based on data from the ECB and central banks of the EU Member States for the years 2008–2016, it has been noted that the long-term maintenance of ultra-low interest rates contributes to a reduction in net interest margin and interest income, particularly in smaller banks and retail banks. Banks systematically increase the share of non-interest income in the structure of income from banking activity. The largest category of such income is fees and commissions, largely related to the performance of deposit and credit activities. The second sources of non-interest income are the bank trading activities. That income is characterized by the highest volatility, which makes it a source of risk and cannot be treated as a stabilizer of banks’ income during times of economic downturn and slowing down in lending.

Highlights

Loosening monetary policy by central banks in highly developed countries leads to lowering interest rates to levels close to zero
The aim of this study is to investigate changes in the structure of banking income in the banking sectors of the EU member states in the years of 2008–2016, i.e. during the period of low and ultra-low interest rates
U the study on financial holdings operating in the USA between 1997 and 2004. They find that benefits that holdings gain on introduction of new non-interest bearing operations are weakened by the increased risk and volatility of their total income

Summary

Introduction

Loosening monetary policy by central banks in highly developed countries leads to lowering interest rates to levels close to zero. The main hypothesis of the research states that the long-term maintenance of low interest rates contributes to lowering net interest margins and increasing the share of non-interest income in the banking income. M after examining the Italian banks operating in 1993–1999 They find that sectoral and geographical diversification of the lending portfolio impacts bank credit risk in mixed ways. Williams [2016] argues that among Australian banks operating during 2002–2014 reduced risk is found in entities with lower share of non-interest rate income in total bank income and specializing in a narrower range of products. The recent study of Bikker and Vervliet [2017] on bank income diversification, indicates that US banks operating between 2001 and 2016 do not significantly increase the share of non-interest income in the total bank income despite long-term operation in a low interest rate environment and narrow net interest margins. One of the main goals of this policy was to reduce the cost of raising funds by businesses

Euro Area

France Germany EU

Germany UK EU

Findings

Conclusions