FX Week

BoE Study Underlines Growth Of Non-Interest Income

REGULATIONS

The Bank of England has published a study of bank profitability over the past ten years that shows a sharp increase in non-interest earnings--which includes a large component of foreign exchange trading revenues for most banks in developed countries.

The article, published in the Bank's latest quarterly bulletin, gives a broad-brush overview of the major trends in banking--decline in asset quality following deregulation, more volatility among banks depending on managements' judgments instead