Bank holding companies (BHCs) can be complex organizations, conducting multiple lines of business through many distinct … legal entities and across a range of geographies. While such complexity raises the costs of bank resolution when … geographic complexity can engender explicit trade-offs between the agency problems that increase risk and the diversification …

. 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 …

Interstate diversification of American banks was initially constrained by severe regulation. However over the years … decade we have witnessed an increasing trend in geographic diversification of American banks. In relation to this fact, the … question of whether interstate geographic diversification has a statistically significant effect on banks' cost of equity …