countercyclical capital schemes is whether conditioning variables are bank-specific or system-wide. The evidence presented in the … paper indicates that the idiosyncratic component can be sizeable when a bank-specific approach is used. This makes a system …

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 …