Much ado about nothing? Interest and non-interest products and services: Their impact on small banks’ margins

Figures & data

Figure 1. Research model.

Table 1. Bank characteristics and firm sample by bank

Bank	Bank data						Firms per bank
	Net profit	Assets	Equity	Solvency (%)	Cost/revenues (%)	Nonperforming assets (%)	Firms	Firms by bank (%)
1	7,613	441,024	49,213	22.6	56.1	0.7	179	4.2
2	4,673	416,693	23,778	20.9	66.3	0.5	151	3.5
3	7,777	502,571	48,544	21.4	59.9	0.5	188	4.4
4	9,490	679,643	100,525	27.1	63.4	0.8	253	5.9
5	5,572	513,603	36,934	14.8	67.3	0.5	180	4.2
6	5,835	421,905	36,064	15.8	62.4	0.9	150	3.5
7	4,842	405,812	33,927	18.3	67.1	0.4	130	3.0
8	14,932	1,202,882	73,311	11.4	64.1	0.5	378	8.8
9	12,051	752,774	68,418	19.3	55.2	0.3	258	6.0
10	3,251	367,396	23,635	14.0	72.6	0.7	121	2.8
11	4,823	505,569	41,486	17.0	70.0	0.3	138	3.2
12	4,678	510,144	29,443	11.9	74.4	0.7	158	3.7
13	10,665	1,076,093	61,652	12.1	69.2	0.5	294	6.9
14	5,531	431,610	33,155	12.7	74.8	0.9	169	3.9
15	9,546	627,189	55,312	18.1	63.2	0.2	238	5.6
16	2,201	574,952	19,972	9.7	87.4	0.9	158	3.7
17	7,388	341,966	60,789	32.7	50.7	0.3	130	3.0
18	10,152	1,290,003	57,682	10.9	76.8	0.5	342	8.0
19	8,611	1,411,773	53,761	12.3	80.4	1.0	329	7.7
20	5,723	594,953	36,664	15.2	69.1	0.8	153	3.6
21	4,557	457,303	33,083	15.8	71.5	0.9	188	4.4

Notes: This table presents the bank characteristics and the number of firms by bank. The values are displayed as thousands of euros. All values are year-end average values in the sample period.

Table 2. Descriptive statistics

Name	Mean	Std.dev	Min	Max	1	2	3	4	5	6	7	8	9	10	11	12
Overall margin	8.270	11.269	−34.9	202.2	1.000
Total assets	1,674.8	3,935.1	5.1	40,818.6	−0.202	1.000
Equity ratio	28.2	46.3	−995.1	100.0	−0.594	0.111	1.000
Return on equity	35.9	74.9	−100.0	100.0	0.234	−0.111	−0.299	1.000
Rating	7.2	1.3	4	11	−0.239	0.260	0.402	−0.059	1.000
Short-term interest rate	1.6	0.7	0	4	0.111	−0.143	−0.083	0.058	0.102	1.000
Short-term loan amount	137.7	1,417.6	0	6,540	0.025	0.050	0.004	−0.016	0.031	−0.063	1.000
Long-term interest rate	0.8	0.9	0	4	0.270	−0.165	−0.214	0.073	0.251	0.210	0.023	1.000
Long-term loan amount	1,161.7	3,832.2	0	8,110.0	0.044	0.120	−0.031	−0.034	−0.006	0.010	0.118	0.187	1.000
Number of products	14.2	11.1	1	183	0.003	0.162	0.012	−0.051	−0.013	−0.048	0.074	0.058	0.084	1.000
Cash management	0.6	0.5	0	1	−0.068	0.013	0.057	−0.064	−0.002	−0.031	−0.003	0.177	0.024	0.078	1.000
Length	15.1	8.8	1	66	0.104	0.168	0.047	−0.058	−0.108	−0.028	0.028	−0.053	0.027	0.217	−0.098	1

Notes: This table presents the descriptive statistics of the sample. We report mean values, standard deviations and minimum and maximum values as well as Pearson correlations. Monetary values are displayed as thousands of euros.

Figure 2. Findings.

Notes: Significance using bootstrapping procedure (500 samples). ***, ** and * denotes significance at the level 1, 5 and 10% level, respectively. Year- and bank-specific effects on the overall margin are included in the model.