geographic complexity can engender explicit trade-offs between the agency problems that increase risk and the diversification … geographic scope tend to provide diversification gains and reduce idiosyncratic and liquidity risks while also increasing BHCs …

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 … performance benefits associated with diversification since each type of diversification tends to reduce the banks? returns …

benefit of greater diversification in terms of higher monitoring dominates the costs of free-riding and duplication of efforts …

models. We first show analytically how model specification impacts 'diversification benefits' for aggregated market and …

We classify a large sample of banks according to the geographic diversification of their international syndicated loan … source of funding, while foreign banks with little diversification are the most fickle. Our findings suggest that the decline …

Should banks be diversified or focused? Does diversification indeed lead to increased performance and therefore greater … between banks' profitability and their portfolio diversification across different industries, broader economic sectors and … associated with diversification since each type of diversification tends to reduce the banks' returns. Additionally, we find that …

The paper examines whether bank diversification in multiple dimensions can protect bank lending from uncertainty shocks … significantly alleviated by bank diversification in the loan portfolio, income, and funding aspects. Our findings offer practical … implications for regulators and banks themselves: bank diversification can effectively act as a lending shock absorber in periods …

benefit of greater diversification in terms of higher monitoring dominates the costs of free-riding and duplication of efforts …