To fee or not to fee

by Ziad Ghandour July 14, 2015

written by Ziad Ghandour July 14, 2015

The question of whether banks should structure their incomes on the premise of interest alone has long been answered in the negative. Diversification of risks and revenue streams have led institutions far beyond being mere lenders to generating income from services, transaction fees, trading, money management fees, commissions and the like. Even before the Great Recession, noninterest income had been researched in literature with a focus on its linkages to profitability and risks. Executive looks at several aspects of noninterest income in Lebanese alpha and beta banks over the past few years. From 2002 to 2014, the number of ATMs in Lebanon nearly trebled from 582 to 1,569 at yearend. These figures are not just impressive; they illustrate a major trend in banking — the pursuit of noninterest income as a way to diversify banks’ revenues. While most banking income still comes from old fashioned lending activities, income from nonlending

Ziad Ghandour

Ziad is the founder of TI Capital, which he established in 1997 in Los Angeles, California Prior to founding TI Capital, as a third generation “oil man”, Ziad primary focus was on structuring oil ventures, successfully transforming a vertically integrated oil company in a globally diversified holding company. In the early 2000s, during the early stages of TI Capital, Ziad simultaneously held a position as the director of a public U.S. midstream oil and gas company, where he headed overseas expansion with deals in Africa, the Middle East, and Asia. Ziad holds a BA in business and a BS in political science from Pepperdine University (89’, 90’) and received an MBA from Pepperdine’s prestigious President and Key Executive program.

To fee or not to fee

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