Conventional wisdom in banking argues that diversification tends to reduce bank risk and improve performance, but the … recent financial crisis suggests that aggressive diversification strategies may have resulted in increased risk taking and … diversification strategies and the risk-return tradeoff in banking. Our data set covers Russian banks during the 1999-2006 period and …

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 …

applied to macroeconomic and bank-level data spanning 2000 ‐15. Findings Bank lending is supported by strong bank balance … non-oil private sector GDP. Lower bank concentration also helps, likely through greater competition, so does stronger … remained robust in 2015 despite oil prices having declined, helped by strong bank balance sheets and as banks reduced their …

risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …, on average, lower loan losses, (b) the loss rate of a given industry in a bank's loan portfolio is lower if the bank has …

risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …, on average, lower loan losses, (b) the loss rate of a given industry in a bank's loan portfolio is lower if the bank has …

loan loss rate of a given industry in a bank‘s loan portfolio is lower if the bank has a major exposure to that industry …

interest margins when credit risk is controlled. -- Income diversification ; interest income ; fee income ; interest margin …

episodes of intensi fied (systemic) bank risk: specialization (capturing overexposures), differentiation (capturing indirect … nd that both individual and systemic bank risk decrease withspecialization. Indirect connectedness of banks is … particularly (and negatively) related to individual bank risk, whereas direct connectedness of banks is particularly (and …

This paper examines the international credit portfolios of German banks. We construct a bank-country panel from a … unique dataset for a representative set of countries and ask why banks leave diversification opportunities unexploited in … some countries. Controlling for bank heterogeneity, we analyse the deviations of actual portfolios from a mean …

We construct a novel signal of bank expectations utilizing confidential data and a regulatory constraint imposed on … bank internal capital markets during the 2008 crisis that made internal equity injections to commercial bank subsidiaries … constraint made it costly ex-ante for multi-bank holding companies (MBHC) to use these funds for the purpose of recapitalizing …