The value at risk measure attempts to summarize in a single number market value risk of a portfolio of financial assets ….The paper focuses on the interaction between the solvency probability of a bank, on one hand, and the diversification potential … achieve some confidence level of solvency we demonstrate that diversification pays when optimizing the use of the equity …

income diversification and market concentration are related to bank stability. Firstly, we document that bank stability is … positively related to revenue diversification, suggesting that banks are more stable when they are more engaged in non …-stability hypothesis that banks in a highly concentrated banking system are more likely to be more stable. Thirdly, we show that market …

aims to analyze the effect of diversification on Indonesian banking efficiency as one of the emerging markets. We used …. Several previous studies of developed markets suggest that diversification has a positive effect on efficiency. This study … relatively low efficiency. Using the panel data, this study found the same result; diversification can improve Indonesian bank …

diversification of assets lead to a lower bond yield-spread. Diversification of non-traditional banking activities leads to a lower …In this study, we investigate the relationship between various dimensions of diversification and the cost of debt for … publicly traded bank holding companies (BHCs). We find that both domestic geographic diversification of deposits and …

’s asset. Diversification and leverage in turn determine both idiosyncratic and systemic insolvency risk. We first characterize …This paper analyzes the effects of bank manager’s incentive pay on financial stability. Two banks are owned by risk …-neutral principals and run by risk-averse managers that determine the level of leverage and how much to diversify into the other bank …

We check if the level of capital buffers influences the quality of bank diversification strategies. We use consolidated … diversification exerted non-monotonic impacts on bank robustness during and after the GFC. Capital buffers preserved the robustness of … less diversified BHCs in times of crisis. Well-capitalized BHCs adopted less prudent diversification strategies amid the …

This study examines the impact of geographic income diversification of large European banks on performance by using … unique hand-collected European banking data. By dividing the total operating income into three regions as home country, the … rest of Europe and the rest of the world, we find evidence that geographic income diversification reduces bank performance …

In this paper, we show the benefits of bank asset diversification for the economy. A more diversified stream of … positive spillovers to the economy. We demonstrate that this diversification-induced lending resiliency is beneficial during … as exogenous shocks to identify the causal effect of asset diversification. Our results speak to the long-standing debate …

link between Pakistan’s Revenue Diversification and banking efficiency over the period 2008 to 2019. Their banking … diversification on banking efficiency in the second portion of the investigation. As a consequence, the findings revealed that it has …Banking efficiency is becoming more vital in a world where international marketplaces are becoming increasingly …

of geographic diversification and distance on the performance of banks, the market power of loans and deposits, and the … that geographic diversification and distance between bank branches and headquarters do not affect the performance of the … banks, but geographic diversification of banks in different areas affects the market power of loans and deposits. The …