Does diversification improve the performance of German banks ? Evidence from individual bank loan portfolios

@inproceedings{Hayden2006DoesDI,
  title={Does diversification improve the performance of German banks ? Evidence from individual bank loan portfolios},
  author={Evelyn Hayden and Oesterreichische Nationalbank and Daniel Porath},
  year={2006}
}
Should banks be diversified or focused? Does diversification indeed lead to enhanced performance and, therefore, greater safety for banks, as traditional portfolio and banking theory would suggest? This paper investigates the link between banks’ profitability (ROA) and their portfolio diversification across different industries, broader economic sectors and geographical regions measured by the Herfindahl Index. To explore this issue, we use a unique data set of the individual bank loan… CONTINUE READING

From This Paper

Topics from this paper.

References

Publications referenced by this paper.
Showing 1-10 of 44 references

CreditMetrics-Technical Document

  • J. P. Morgan
  • 1997
Highly Influential
3 Excerpts

Consumer price adjustment under the microscope: Germany in a period of low Johannes Hoffmann inflation

  • Jan Hendrik Fisch
  • 2006

Exports versus FDI in German manufacturing: firm performance and participation in inter- Jens Matthias Arnold national markets

  • Robert Jäckle
  • 2006

Koetter, heterogeneity on bank efficiency scores

  • J. Bos, M. F. Heid
  • 2006

An estimated DSGE model for the German

  • Axel Jochem
  • 2005

A“wreckers theory” of financial distress

  • Thomas A. Knetsch
  • Ulf von Kalckreuth
  • 2005

Banks’ regulatory capital buffer and the

  • Frank Heid
  • 2005

Similar Papers

Loading similar papers…