Cadenas, Pedro; Gzyl, Henryk - In: Journal of risk and financial management : JRFM 15 (2022) 10, pp. 1-25
Diversification practices by banks affect their own risk of failing and the risk of the banking system as a whole (systemic risk). A seminal theoretical work has shown that linear diversification can reduce the risk of a bank failing, but at the cost of increasing systemic risk. Later, a...
