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 …

Risk diversification is the basis of insurance and investment. It is thus crucial to study the effects that could limit … occurrence, systemic risk can reduce dramatically the diversification benefits. It is clearly revealed via a non …

income diversification reduces the systemic risk of the Ghanaian banking system. Also, the study found that asset … diversification strategies of the banks have a meaningful effect on bank stability when financial institutions augment their … diversification decisions with information from Credit Scoring Agencies. The implication of the study is that banks which employ the …