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Bank Market Power and Non-Interest Income in Emerging Markets

Author

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  • Canan Yildirim

    (Kadir Has University)

  • Adnan Kasman

Abstract

This paper examines how market power in traditional intermediation affects Turkish banks’ involvement in non-interest income generating activities, in particular, fee and commission income. The results show that banks have different levels of market power in the loan and deposit markets and these, in turn, affect banks’ commitment to non-interest generating activities differently. While banks with a limited market power in the loan market are engaged more in fee and commission generating activities, banks with a high market power in the deposit market are able to generate higher commission and fee income.

Suggested Citation

  • Canan Yildirim & Adnan Kasman, 2015. "Bank Market Power and Non-Interest Income in Emerging Markets," Working Papers 930, Economic Research Forum, revised Jul 2015.
    • Handle: RePEc:erg:wpaper:930
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    References listed on IDEAS

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