Non-Interest Income: Dealing with the Significant Challenges Ahead
Non-interest income has become a significant contributor to bank earnings over the past few years. In the foreseeable future, boosting NII will become a mantra, given the likelihood that income from consumer and corporate loans will continue to shrink. And to make things more challenging, advocacy groups and regulatory scrutiny will continue to alter the dynamics for fee income.
In this Strategic Commentary titled, “Non-Interest Income: Dealing with the Significant Challenges Ahead,” Speer & Associates, Inc. (S&A) examines the immediate issues facing financial institutions from regulatory restrictions involving a number of major non-interest income sources and potential pricing strategy changes. Of particular interest is an assessment of the importance of these fees to bank earnings, their stability and some of the risks involved, as well as rewards to be reaped if pricing strategies are successful.
