The Effect of Fee Based Income and Trading Income on Market Performance and Risk in the Banking Industry in Indonesia

Authors : Lasty Agustuty

Volume/Issue : Volume 5 - 2020, Issue 11 - November

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This study aims to examine the effect of bank income on market risk and performance. Income is measured by the proportion of income that comes from fees and trading income. Market performance is measured using the Tobins' Q ratio, while market risk is measured using stock beta. By using panel data from 27 banks that public in Indonesia during the 2015-2019 period. The results showed a positive and significant relationship between fee-based income and marketbased performance based on the proxy of Tobin's Q value. It is different from trading income, which shows a positive and insignificant relationship with market performance. The results of this study also indicate that both fee-based income and trading income have no significant negative effect on the beta value of stocks.

Keywords : Fee Income, Trading Income, Performance, Bank Risk.


Paper Submission Last Date
31 - December - 2021

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