concentrating their lending disproportionately into one industry. This specialization improves a bank’s industry-specific knowledge … and, ultimately, bank performance. Banks concentrate more on their primary industry in times of instability and relatively …

banks and find no evidence that this shift in the bank business model harms bank profitability. To the contrary, a higher … share of non-traditional bank income is associated with a higher profitability. The increase in profitability does not seem … to come at the cost of substantially larger bank-level risk taking, at least not for large banks, which are the banks …