The Relationship Between Banks’ Noninterest Income and Systematic Risk

This study empirically investigates the impact of non-interest income components on the systematic risk of banks listed on Borsa Istanbul in Türkiye. Quarterly panel data from 2008 to 2023 were analysed using panel least squares regression, including dummy variables for the global financial crisis, exchange rate crisis, and pandemic. Bank size and weekly returns decrease systematic risk; non-interest income effects vary with macroeconomic shocks. An exchange rate crisis increased risk, while leverage reduced it. The study uniquely captures Türkiye’s structural context and the complex influence of non-interest income on systematic risk.