This research paper studies the relationship between bank net interest margin (NIM) and non-interest income (NII) using Cambodian banking data. The research focuses on the contribution of the NII, which is the non-traditional banking activity, to the banking profitability. The analysis runs a three-stage least square system to handle the NIM and NII employing 28 banks data from 2004-2010. For the growing period, there is a trade-off between interest margin and non-interest income. It is argued that banks increase non-traditional activities associates with the reduction in net interest margin and vice-versa. This paper also finds that the non-traditional activities have positive causal effect on net interest margin in the post financial crisis period.

The prevalence of renewable energy helps solve environmental problems and strengthens energy security with less dependence on nonrenewable energy, mainly fossil fuels. One important aspect is that renewable energy consists of two components: traditional and modern renewable energy. This paper examines the effects of an oil price shock on these two different types of renewable energy consumption by applying a local projection method to panel data from 147 countries during the period from 1993 to 2015. Our results show that the effects of an oil price shock depend on the development level and the dependence on nonrenewable energy. In highly nonrenewable energy-dependent countries, traditional renewable energy is sensitive to oil price changes, irrespective of their development levels. However, both traditional and modern renewable energy are insensitive to oil price changes in less nonrenewable energy-dependent countries, regardless of their development levels. Meanwhile, an oil price shock positively affects modern renewable energy in developed countries with high dependence on nonrenewable energy, but it does not in developing countries. These results provide important policy implications for policymakers and investors to foster modern renewable energy and call for balancing macroeconomic development with environmental benefits and costs.

Partial dollarization is a significant phenomenon in the banking sectors of many developing countries, yet evidence on its spread through bank branch networks remains scarce. This paper investigates interregional capital flows within Cambodia’s banking system, characterized by the coexistence of multiple currencies. Using branch-level deposit and loan data, we developed a measure of the regional fund flows to fit the banking sector for developing countries. Our findings reveal that excess funds from deposits in Phnom Penh and wholesale funding significantly cover lending across provincial regions for both United States dollars and riels. However, banks reallocate funds in riel less actively, despite recent increases in riel deposits. Regional differences in loan and deposit demand between currencies further highlight distinct patterns. This study underscores the need to understand currency-specific trends to promote local currency usage and enhance financial inclusion in dollarized economies.