Should banks be diversified or focused? Does diversification indeed lead to enhanced performance …

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 …

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 … the financial crisis, when maintaining credit availability is of paramount importance. We use changes in bank regulation …

effect of diversification on the cost of a bank loan is channeled primarily through coinsurance in investment opportunities … corporate diversification strategy as an identification tool for organizational structure, we find that diversified firms have … and cash flows and that the effect is nonlinear: as the extent of corporate diversification grows, the cost …

We classify a large sample of banks according to the geographic diversification of their international syndicated loan … source of funding, while foreign banks with little diversification are the most fickle. Our findings suggest that the decline …

Should banks be diversified or focused? Does diversification indeed lead to enhanced performance and, therefore … banks? profitability (ROA) and their portfolio diversification across different industries, broader economic sectors and … geographical regions measured by the Herfindahl Index. To explore this issue, we use a unique data set of the individual bank loan …

risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …, on average, lower loan losses, (b) the loss rate of a given industry in a bank's loan portfolio is lower if the bank has …

dampening of non-dominant banks' capacity for monopoly pricing. Empirical findings demonstrate that diversification across …

risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …, on average, lower loan losses, (b) the loss rate of a given industry in a bank's loan portfolio is lower if the bank has …

loan loss rate of a given industry in a bank‘s loan portfolio is lower if the bank has a major exposure to that industry …