Conventional wisdom in banking argues that diversification tends to reduce bank risk and improve performance, but the … recent financial crisis suggests that aggressive diversification strategies may have resulted in increased risk taking and … poor performance. This paper addresses this important question by evaluating the empirical relationship between …

U.S. banking organizations' exposure to climate risks with implications for risk management practices and supervisory …

. Exploiting a unique dataset, we show how age, gender, and education composition of executive teams affect risk taking of … financial institutions. First, we establish that age, gender, and education jointly affect the variability of bank performance … younger executive teams increase risk taking, as do board changes that result in a higher proportion of female executives. In …

, whereas similar educational backgrounds reduce the chance that the appointee comes from outside. When we examine performance …

relation between loan risk and collateral. Specifically, we posit that different economic characteristics or types of … collateral pledges may be associated with the empirical dominance of the four different risk-collateral channels implied by … economic theory. For our sample, collateral overall is associated with lower loan risk premiums and a higher probability of ex …

borrower risk, loan contract terms, and ex post performance for both secured and unsecured loans. The results suggest that the … private information about borrower risk that is unobserved by the lender. The data also include public information about …