Journal Article
How do banks make money? the fallacies of fee income
Abstract: In the first of two articles in this issue, the authors document the increasing importance of noninterest income at U.S. commercial banking companies and address two fundamental misunderstandings regarding this trend: the belief that fee-based activities provide more stable earnings than interest-based income and the belief that fee income flows chiefly from nontraditional, nonbanking activities.
Keywords: Income; Money; Payment systems;
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Bibliographic Information
Provider: Federal Reserve Bank of Chicago
Part of Series: Economic Perspectives
Publication Date: 2004
Volume: 28
Issue: Q IV
Pages: 34-51