مؤسسة الشرق الأوسط للنشر العلمي
عادةً ما يتم الرد في غضون خمس دقائق
Abstract
The income diversification puzzle has captured the attention of several researchers and was further accentuated by the global trend for universal banking that sparked in the early 2000s. Today, commercial bank income structure is still a topic of active empirical researches. not reaching clear-cut evidence regarding the merits and the demerits of expanding into new lines of banking activities. This study attempts to investigate the impact of non-interest income and its components on the profitability of Saudi universal banks. Our sample is composed by 10 Saudi commercial banks for the period from 2010 to 2019. We develop an econometric model to explore different dimensions of Saudi bank income structure. Our findings show that Our results show that the interest profits of Saudi banks continue to rise and that they still constituted the major part of bank profits. However, non-interest profits are also growing at a slow pace. Despite their excess liquidity, Saudi banks still prefer financial intermediation to direct and off-balance sheet investments. They do not benefit enough from diversification