negatively on financial performance, we find no evidence to suggest that diversification has been detrimental to the performance … of Australian banks. It appears, rather, that Australia's banks have improved their risk-return revenue streams as an … outcome of diversification. We confirm our findings with both accounting and market measures of performance …

Conventional wisdom in banking argues that diversification tends to reduce bank risk and improve performance, but the … recent financial crisis suggests that aggressive diversification strategies may have resulted in increased risk taking and … diversification strategies and the risk-return tradeoff in banking. Our data set covers Russian banks during the 1999-2006 period and …

In general, conglomeration leads to diversification of risk (the diversification benefit) and a decrease in shareholder … value (the conglomerate discount). Diversification benefits in financial conglomerates are typically derived without … conglomerate, i.e., shareholders and debt holders should receive risk-adequate returns on their investment. In this paper, we …

increase prevails through a second channel: an increase in risk shifting. (3) Risk shifting decreases with the diversification …We present a model where bank assets are a portfolio of risky debt claims and analyze stockholders' risk … increases, risk shifting by borrowers increases, even if their leverage is unchanged (zombie lending). (2) While the literature …

Modern portfolio theory claims that diversification into non-correlated or negatively correlated activities reduces the … overall risk of a portfolio. Considering the total income of a bank as a portfolio of interest income and non-interest income … income and non-interest income influence the various risk factors of banks. We set out a study in the Indian context. We have …

examine the impact of geographical diversification on bank's risk and returns, a Least Square Dummy Variable (LSDV) regression … irreversible process of liberalization, globalization and privatization. Banks in India, to a large extent, have become … scale of geographical and revenue diversification over the years. Geographical diversification is expected to bring positive …

may be linked to diversification and scale economies, thus leading to less risk. In this paper, we provide empirical …Bank complexity is often associated with risk, due to moral hazard and agency problems. At the same time, complexity … evidence on the relationship between bank complexity and risk-taking. We find a positive relationship between geographical …

We study the concurrent impact of functional, geographic and loan portfolio diversification on the stability of … commercial banks in India. The sample of 48 banks includes public sector banks, private sector banks and foreign banks operating … in India. The unbalanced panel details operational and financial performance for the decade starting from 2007. We …