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Abstract
This study aims to analyze how non-interest income impacts banking risk in the case of the Colombian economy. To this end, a panel data for the period 2016-2022 was constructed, covering 29 credit institutions. The results show that the increase in global non-traditional income does not increase either bankruptcy probabilities or credit risk. However, when analyzing income by type, it is found that increases in foreign exchange and commission-based income can indeed increase banking risk. Therefore, the suggestion is to improve regulation of non-traditional income due to its rapid growth and the potential to generate macro-financial instability.
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