. This paper investigates whether diversification influences banks' investment (credit) policy and profitability. Diversified … banks appear to benefit from “coinsurance,” supply more credit, and seem more profitable. However, diversification does not … contributes to the current debate on the optimal scope of bank activities, and highlights novel channels through which …

Advocates of diversifying bank income sources often argue that diversification improves the resilience of banks during … periods of distress. To test this proposition, we analyze the impact of income diversification on the performance of Italian … banks during the recent financial crisis. Using detailed data on the composition of bank income, we show that institutions …

The paper examines how loan portfolio diversification drives bank returns, mainly focusing on the conditioning roles of … increased sectoral loan portfolio diversification reduces bank returns, but not all banks are equally affected. Banks that … adopted a business model towards non-interest activities are hurt less from loan portfolio diversification, and bank market …

and calibrate it to match aggregate firm and bank exposure to business cycle risks. Our model exhibits banking crises that …

How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …

How does bank distress impact their customers' probability of default and trade credit availability? We address this … question by looking at a unique sample of German firms from 2000 to 2011. We follow their firm-bank relationships through times … of distress and crisis, featuring the different transmission of bank distress shocks into already weakened firm balance …

We develop a new identification strategy to evaluate the impact of the geographic expansion of bank holding company … (BHC) assets across U.S. metropolitan statistical areas (MSAs) on BHC risk. We find that the geographic expansion of bank ….e., MSAs with different industrial structures and business cycles. We do not find that geographic diversification improves loan …

We construct a novel measure of bank performance, investigate its determinants, and show that it affects bank … inefficiencies, rather than monetary or regulatory measures, were the main driver of bank underperformance. We also show that higher …

This study examines the existence of a bank lending channel in the Indonesian banking system and tests whether monetary … policy shock is transmitted via bank risk in bank lending activity. We use banking micro-data from 2007 to 2016. Using static …-term investments and also focus on generating income from high-risk non-traditional bank products during the contracting period. Hence …

We use panel data from nine countries over the period 1996 to 2003 to test how revenue diversification in conjunction … with increasing bank size affects bank value. Using a comprehensive framework for bank performance measurement, we find no … evidence for a conglomerate discount, unlike studies concerned with industrial firms. Rather, revenue diversification increases …