Bank diversification: laws and fallacies of large numbers

Joseph Haubrich

No 9417, Working Papers (Old Series) 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; non-bank 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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