Bank market power and revenue diversification: Evidence from selected ASEAN countries

► Association between market power and revenue diversification for ASEAN banks is non-linear. ► At lower degrees of market power in loan and deposit markets, managers concentrate on revenue diversification strategies. ► The association between bank market power and revenue diversification has changed over time. ► The credit losses experienced during the Asian financial crisis have encouraged ASEAN banks to diversify into non-traditional activities. ► When the markets recovered and loan demand increased, however, traditional interest-based business becomes more important.