Abstract
This paper examines the effect of the ownership and the global crisis on income diversification of Indonesian Banks during the period of 2005 to 2012. We distinguish the income into traditional and non-traditional, where the latter is raised from non-traditional activities, such as service commission, trading revenue, insurance fee, etc. We also distinguish the types of ownership when applying the pooled estimation technique. The result shows the ownership does not affect the income diversification of Indonesian banks. Furthermore, public ownership affects the non-traditional incomes negatively, while foreign ownership effect is positive. This paper finds no evidence about the effect of the global crisis on income diversification of Indonesian banks. Keywords: Income diversification, ownership, global crisis, Indonesian banks.JEL Classification: G01, G15, G21
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