Should banks be diversified or focused? Does diversification indeed lead to enhanced performance and, therefore … banks? profitability (ROA) and their portfolio diversification across different industries, broader economic sectors and … geographical regions measured by the Herfindahl Index. To explore this issue, we use a unique data set of the individual bank loan …

Diversifikationseffekten, die als Folge der Geschäftsstrategie einer Bank (z.B. durch Produktdiversifikation oder geografische Diversifikation … behandelt die Diversifikation innerhalb einer Risikoart (z.B. Markt- oder Kreditrisiko), wohingegen Interrisiko-Diversifikation … die Diversifikation zwischen verschiedenen Risikoarten beschreibt und meist durch eine Interrisiko …

this end we measure diversification for all German banks in the period from 1993 to 2002. As measures we use a broad set of … heuristic approaches which capture the deviation of a bank's portfolio from a specified benchmark. Conceivable benchmarks are … naive diversification across all industries or, alternatively, the economy's industry structure. With this framework our …

specialization. We use data from the Bundesbank's quarterly borrowers statistic to determine the degree of diversification in the …