market. When supported banks' investment strategy differed materially from that of the average bank it was in holding less …Banks that enjoyed generous external financial support tended to under-price risk in the international syndicated loan … market and did not show signs of innovation in their loan participations. Loans arranged by such banks had on average lower …

We study empirically the effect of focus (specialization) vs. diversification on the return and the risk of banks using …) focus and diversification using a unique data set that is able to identify individual bank loan exposures to different … bank return while endogenously producing riskier loans for all banks in our sample (this effect being most powerful for …