guarantees could also amplify a moral hazard problem that induces large banks to take excessive risk. If such risk is mispriced … diversification index to account for complexity, we find robust evidence consistent with mispricing among the most diversified large …

Diversification through pooling and tranching securities was supposed to mitigate creditor runs in financial … institutions by reducing their credit risk, yet many financial institutions holding diversified portfolios experienced creditor … liquidity after an adverse shock and increases the probability of a panic run by creditors. We show that diversification, while …

increase prevails through a second channel: an increase in risk shifting. (3) Risk shifting decreases with the diversification …We present a model where bank assets are a portfolio of risky debt claims and analyze stockholders' risk … increases, risk shifting by borrowers increases, even if their leverage is unchanged (zombie lending). (2) While the literature …

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

Developments in risk-transfer instruments and risk management techniques in the last two decades have fundamentally … profitability matters for the asset-liability dependency but not in the same way for all three sectors. Asset-liability dependency …

sector, their extent and progress within last five years, and their effects on risk and profitability are evaluated. Recent … profitability, new improvements in risk management prove that more importance should/will be attributed to the off-balance sheet … faaliyetlerinin büyüklüğü ve gelişimi, bankacılık sektöründe 2006-2011 yılları arasındaki gelişmeler ile risk ve karlılık açısından …

-political and global risk levels. Likewise, the results of traditional determinants indicate that the profitability of Ukrainian …This study specifically examines the effects of domestic-political risk and global economic policy uncertainty factors … on the profitability of Ukrainian banks during the 2005-2015 period. The empirical results underscore that the domestic …

This paper studies the impact of cyclical systemic risk on future bank profitability for a large representative panel … reductions in bank capital, our method can be used to quantify the level of “Bank capital-at-risk” for a given banking system … risk predict large drops in the average bank-level return on assets (ROA) with a lead time of 3-5 years. Based on quantile …

investigates the effect of economic policy uncertainty (EPU) on bank profitability in 22 advanced countries. The measures of bank … profitability are net interest margin, lending-deposit spread, non-interest income ratio, after-tax return on asset, before … ratio are negatively related to profitability in times of high EPU. The findings also reveal that high EPU has a positive …

-adjusted profitability are used, the risk-return trade-off seems to hold. …This paper examines the validity of the risk-return trade-off for a sample of Czech banks over the period 2002-2022 by … analysing the relationship between the bank risk and risk-adjusted returns. I find evidence of a significant negative …