This paper explores the effects non-interest income (NII) generating activities on banking sector efficiency in 152 countries from 1996 to 2017. Contrary to existing studies that investigate the effects of diversification on banking performance at the micro-level, this study seeks to provide new...

This paper shows that stable net-interest margins of banks are uninformative about banks' interest rate exposure. We show that neither deposits nor market power are essential for achieving stable net-interest margins (NIM) in long-short fixed income portfolios. We show that matching interest...