Working Paper
Bank diversification: laws and fallacies of large numbers
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;
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Working Papers (Old Series)
Publication Date: 1994
Number: 9417