. 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 … diversification may impact banks' credit supply and therefore the real economy …

We check if the level of capital buffers influences the quality of bank diversification strategies. We use consolidated … diversification exerted non-monotonic impacts on bank robustness during and after the GFC. Capital buffers preserved the robustness of … less diversified BHCs in times of crisis. Well-capitalized BHCs adopted less prudent diversification strategies amid the …