Conventional wisdom in banking argues that diversification tends to reduce bank risk and improve performance, but the … recent financial crisis suggests that aggressive diversification strategies may have resulted in increased risk taking and … diversification strategies and the risk-return tradeoff in banking. Our data set covers Russian banks during the 1999-2006 period and …

guarantees could also amplify a moral hazard problem that induces large banks to take excessive risk. If such risk is mispriced … diversification index to account for complexity, we find robust evidence consistent with mispricing among the most diversified large …

investigated whether the diversification of banks' asset items has a financial impact on the risk level. In this context, panel … Sector for the period 2008-2017, and the relationship between banks' asset diversification and riskiness was investigated …

the context of banks diversifying into the other bank's asset, which may potentially intensify a systemic risk. The … central results of the paper are as follows. When creditors punish the bank's excessive risk exposure by demanding higher risk … premium, the bank owners' optimal diversification will coincide with the diversification that maximizes the combined value of …

We present a model where bank assets are a portfolio of risky debt claims and analyze stockholders' risk … increase prevails through a second channel: an increase in risk shifting. (3) Risk shifting decreases with the diversification …-taking behavior while considering the strategic interaction between debtors and creditors. We find that: (1) as the leverage of a bank …

changes in the diversification nature of banks activities. We analyzed the financial statements of (13) Jordanian banks on …) to measure the diversification degree of revenue, credit, and deposits activities.The study concluded that (a) stock … market has evaluated the changes in revenue diversification more efficiently than changes in the structure of credit or …