We study empirically the effect of focus (specialization) vs. diversification on the return and the risk of banks using …) focus and diversification using a unique data set that is able to identify individual bank loan exposures to different … bank return while endogenously producing riskier loans for all banks in our sample (this effect being most powerful for …

(particularly) interstate liberalization of bank branching restrictions. This effect arises primarily from convergence in the … financial development has important consequences for the efficiency and specialization (or diversification) of investments, in a …