"This paper examines the implications of bank activity and short-term funding strategies for bank risk and returns …-interest income generating activities such as trading increases the rate of return on assets, and it may offer some risk …, although it can offer some risk reduction at commonly observed low levels of non-deposit funding. A sizeable proportion of …

strengthens investor confidence, limits exposure to systemic risk, and reduces transactions costs. Chapter 7 discusses the …

diversity. In order to promote risk diversity, significant measures should be taken to increase competition on the demand side …