The paper focuses on the interaction between the solvency probability of a banking firm and the diversification … achieve a confidence level for solvency, we demonstrate that diversification reduces the amount of equity. Notably, the VaR …

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 …

We present a model where bank assets are a portfolio of risky debt claims and analyze stockholders' risk …-taking behavior while considering the strategic interaction between debtors and creditors. We find that: (1) as the leverage of a bank … demonstrates that an increase in comovement of a loan portfolio increases the bank's cost of default directly, we find that 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 …

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

factors affecting risk management efficiency in banks. For empirical investigation, we employed Panel regression analysis … taking a stratum of time series data and cross-sectional variants of macro and bank-specific factors for period covering 2003 … to 2009. Result for panel regression indicates that risk management efficiency in Nigerian banks is not just affected by …

paper examines the main bank risk determinants in Latin America. The period analysed covers the timespan from 1999 to 2013 …-driven comparable methodology to classify and select commercial banks from the sample. We study bank risk proxied by the Z-score. We use …

-deregulation diversification, which in earlier studies has been shown to lead to improved stock and earnings performance. Our findings have … their complexity by the Bank for International Settlements and the Federal Reserve. …