Product Diversification in the European Banking Industry: Risk and Loan Pricing Implications

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Laetitia Lepetit; Emmanuelle Nys; Philippe Rous; Amine Tarazi;
  • Publisher: HAL CCSD
  • Subject: [ SHS.ECO ] Humanities and Social Sciences/Economies and finances | JEL : G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages
    mesheuropmc: education | health care economics and organizations

The purpose of this paper is to investigate the relationship between bank risk and product diversification in the changing structure of the European banking industry. Based on a broad set of European banks for the period 1996-2002, our study shows that banks expanding i... View more