structure shows a formation of bank clusters that are involved in competition. Specifically, network properties, such as … centroid, average path length, the distance of a node from the centroid, the total number of connections in the inter-bank …

The paper examines how loan portfolio diversification drives bank returns, mainly focusing on the conditioning roles of … increased sectoral loan portfolio diversification reduces bank returns, but not all banks are equally affected. Banks that … adopted a business model towards non-interest activities are hurt less from loan portfolio diversification, and bank market …

, to capture market power, and the data enveloped analysis technique to measure bank performance, our result shows … significant differences in Lerner scores (which represent bank market power) of the two groups of banks. Differences in the Lerner … scores provide evidence of a group of strong banks that is isolated from other banks. This implies that this strong bank …