are regulated, including the need to obtain a charter to operate and explicit and implicit federal guarantees of bank … liabilities to reduce the probability of bank runs. These aspects of banking affect a bankś choice of risk vs. expected return …, which, in turn, affects bank performance. Banks have an incentive to reduce risk to protect the valuable charter from …

This study examines the infuence of US banks' revenue diversification on profitability, equity capital, and credit risk … diversification measures on profitability, equity capital, and credit risk both in comparative statics and dynamically along the … business cycles. Moreover, profitability, equity capital, and risk in medium size banks reflect insensitivity to these measures …