Cadenas, Pedro; Gzyl, Henryk - In: Journal of risk and financial management : JRFM 14 (2021) 2/73, pp. 1-10
One of the controversies of diversification is that it may not be beneficial to banks, as it tends to increase systemic risk. Recent theoretical and empirical work have addressed this problem. We argue, from a theoretical perspective, that this controversy ultimately depends on how risk is...