Could Regional and Cantonal Banks Reduce Credit Risk through National Diversification?

被引：0
|
作者：
Bertrand Rime
机构：
[1] Swiss National Bank,Financial Stability Section
来源：
Swiss Journal of Economics and Statistics | 2007年 / 143卷 / 1期
关键词：
diversification; economic capital; consolidation; G21; G28; G31;
D O I：
10.1007/BF03399233
中图分类号：
学科分类号：
摘要：
This paper estimates the reduction of credit risk that can be achieved in Switzerland through a national diversification of bank lending. Using a credit risk model based on corporate default rates, we find that the risk of a nationally diversified loan portfolio can be up to 20% smaller than the average of the risks of cantonal portfolios. From a financial stability perspective, this substantial risk diversification potential should motivate particular scrutiny on the more than hundred Swiss banks staying on the regional business model.
引用
收藏
页码：49 / 65
页数：16
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