that the full risk sharing equilibrium may not require much diversification of equity portfolios when there is price … consumption across countries from the predictions of models with full risk sharing. It is commonly believed that these risk …

became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by … embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find …

of a mean-variance portfolio optimization model. Overall, international diversification gains in banking appear to be … countries and their subsidiaries overseas during 1995-2004, and studies the extent of diversification gains from their local …, particularly to those located in emerging market countries, are able to attain higher risk-adjusted returns. These gains are …

This paper assesses the impact of the geographic diversification of bank holding company (BHC) assets across the United …

We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We … first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the … empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for …

The paper investigates EU banks' profitability through the recent financial cycle using banklevel balance sheet and …, such as higher reliance on fees and commission income, were associated with better profitability post-crisis …

This paper explores the determinants of profitability across large euro area banks using a novel approach based on … conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank … profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a …

This paper reviews the empirical relationships between credit growth, economic recovery, and bank profitability in … profitability is positively and significantly influenced by credit growth, but this relationship has weakened after the GFC …

profitability. Banking system consolidation can play a role in facilitating such efficiency gains, but its effectiveness is likely …This paper examines the case for efficiency-driven banking sector consolidation in Italy, evaluates its potential … effects on profitability, and discusses policy options to facilitate a consolidation process that is as effective as possible …