In financial theory, the optimal allocation of assets and its relationship with profitability has been one of the main … this question focusing in diversification of the loan portfolio, presenting a theoretical model that considers the possible … gains from diversification, while taking in to account the effects of monitoring. Additionally, we present empirical …

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 …

of the risk distribution. This measure is estimated and indicates better diversification benefits for conglomerates …We study the dependence between the downside risk of European banks and insurers. Since the downside risk of banks and … insurers differs, an interesting question from a supervisory point of view is the risk reduction that derives from …

The paper focuses on the interaction between the solvency probability of a banking firm and the diversification … risk (VaR) into the firm-theoretical model of a banking firm facing the risk of asset return. Given the necessity to … achieve a confidence level for solvency, we demonstrate that diversification reduces the amount of equity. Notably, the VaR …

interest margins when credit risk is controlled. -- Income diversification ; interest income ; fee income ; interest margin … analyzes the determinants of non-interest income and its impact on financial performance and the risk profile of German banks … between 1995 and 2007. We find empirical evidence that for all German universal banks risk-adjusted returns on equity and …

The paper focuses on the interaction between the solvency probability of a banking firm and the diversification … risk (VaR) into the firm-theoretical model of a banking firm facing the risk of asset return. Given the necessity to … achieve a confidence level for solvency, we demonstrate that diversification reduces the amount of equity. Notably, the VaR …

-offs and write-downs, we examine the impact of loan portfolio sector concentration on credit risk. By controlling for common … risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …

. This paper investigates whether diversification influences banks' investment (credit) policy and profitability. Diversified …U.S. banks have increasingly diversified into activities traditionally considered as non-core for the banking sector … banks appear to benefit from “coinsurance,” supply more credit, and seem more profitable. However, diversification does not …

risk - the focus of this paper - is crucial. Our results show revenue diversification reduces insolvency risk in banks with … personal wealth. The link identified between ownership concentration and revenue diversification is a novel way of analyzing … the impact of the latter on insolvency risk in banks. The results also have important policy implications for regulators …

Interstate diversification of American banks was initially constrained by severe regulation. However over the years … decade we have witnessed an increasing trend in geographic diversification of American banks. In relation to this fact, the … question of whether interstate geographic diversification has a statistically significant effect on banks' cost of equity …