) abilities and on the sectoral concentration risk of a credit portfolio. In this paper, we examine in the first part if … increase of portfolio risk due to the higher sectoral concentration. If specialization is instead measured by distance measures …

-offs and write-downs, we examine the impact of loan portfolio sector concentration on credit risk. By controlling for common …

multiple strategies offers sizable diversification benefits. Our rule leverages these benefits and compares favorably to eleven …

point of view, the common practice to rely on measures of concentration only in the debate about diversification and focus … this end we measure diversification for all German banks in the period from 1993 to 2002. As measures we use a broad set of … naive diversification across all industries or, alternatively, the economy's industry structure. With this framework our …

specialization. We use data from the Bundesbank's quarterly borrowers statistic to determine the degree of diversification in the …