. 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 …

We classify a large sample of banks according to the geographic diversification of their international syndicated loan … most stable source of funding, while foreign banks with little diversification are the most fickle. Our findings suggest …