Bank diversification: laws and fallacies of large numbers

Joseph Haubrich ()

No 9417, Working Paper from Federal Reserve Bank of Cleveland

Abstract: A clarification of the distinction between risk and failure in assessing bank diversification, showing how increasing bank size may increase bank risk even though it lessens the probability of failure and lowers the expected loss.

Keywords: Bank failures; Nonbank activities (search for similar items in EconPapers)
Date: 1994
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Journal Article: Bank diversification: laws and fallacies of large numbers (1998)
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