In this paper, we study the implications of diversification in the asset portfolios of banks for financial stability … both the level of diversification, and the connectivity and structure of the financial network. In contrast to earlier … studies we find that diversification at the level of individual banks may be beneficial for financial stability even if it …

. The paper contributes to the debate shedding light on the controversial relation between risk-diversification and … setting and by a mean-field approximation the law of motion of the system's fragility is derived. We show that diversification …

complete a Charta I of GENEROSITY-CREATIVITY-SOLIDARITY WITHIN CREATIVE PARTNERSHIP, to largely diffuse the Charta I and to …

. 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 …

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 … financial crisis. By contrast, diversification across broad activity classes, such as lending and capital market activities, did …