We study both theoretically and empirically the inter- dependence of lending decisions in different country branches of … depositor run and a regulatory action if attained. A separate channel of shock propagation exists since lending decisions are … both countries to the parent bank home country disturbance. Second, we look for the presence of lending contagion by panel …

technological diversification. Production makes use of different input varieties, which are subject to imperfectly correlated shocks …. In our model, the expansion in the number of varieties provides diversification benefits against variety-specific shocks …

We study how financial market efficiency affects a measure of diversification of output across industrial sectors … and for various levels of disaggregation, we construct a benchmark measure of diversification as the set of allocations of … patterns disappear when we employ "naive" measures of diversification based on the equal spreading of output across sectors …

diversification is less effective when jumps are frequent, unpredictable and strongly correlated. Public supervisors may also mind …

consider transition risks in their lending. In contrast, banks less advanced in managing climate risk do not to the same extent …