2000-2016, we find that increased business diversification exerts two competing effects on bank risk. The direct effect of …This paper examines the impact of business diversification of banks on their risk, with efficiency taken into … consideration as a conduit. Using bank-level data from more than 1000 commercial banks in 39 emerging economies during the period of …

find that increased business diversification exerts two competing effects on bank risk, and overall reduces bank risk. The …-discount” argument — with its extended implications on bank risk. In addition, we also present evidence that the diversification-bank … implications for diversification strategies by bank managers as well as for the effective surveillance by bank regulators …

This study investigates the impact of multimarket contacts on bank profitability in the Vietnamese banking system from … geographically diversified, more technically efficient, and have lower credit risk. Regarding the role of bank ownership, more …

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 …

Bank holding companies (BHCs) can be complex organizations, conducting multiple lines of business through many distinct … legal entities and across a range of geographies. While such complexity raises the costs of bank resolution when … geographic complexity can engender explicit trade-offs between the agency problems that increase risk and the diversification …

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 …

authors stress that bank management contemplating diversification into the commercial sector must be selective about which … possible benefits from combining banking and commerce, including portfolio diversification, the creation of internal capital … that portfolio diversification could be an important benefit from combining banks with some types of nonbank firms. The …

diversification within large banks and financial conglomerates. We discuss the limited value of the normal distribution based … of the risk distribution. This measure is estimated and indicates better diversification benefits for conglomerates …

. This paper investigates whether diversification influences banks' investment (credit) policy and profitability. Diversified … banks appear to benefit from “coinsurance,” supply more credit, and seem more profitable. However, diversification does not … contributes to the current debate on the optimal scope of bank activities, and highlights novel channels through which …

, an insight into how the ownership structure of a bank affects investment decisions, performance and ultimately insolvency … 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 …