bank managers and regulators in China as well as in other emerging economies …This paper investigates the effects of focus versus diversification on bank performance using data on Chinese banks …

This paper assesses how shocks to bank capital may influence a bank's portfolio behaviour using novel evidence from a … UK bank panel data set from a period that pre-dates the recent financial crisis. Focusing on the behaviour of bank loans …, we extract the dynamic response of a bank to innovations in its capital and in its regulatory capital buffer. We find …