Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202463
Authors: 
Gropp, Reint E.
Noth, Felix
Schüwer, Ulrich
Year of Publication: 
2019
Series/Report no.: 
IWH Discussion Papers No. 6/2019
Abstract: 
We show that banks that are facing relatively high locally non-diversifiable risks in their home region expand more across states than banks that do not face such risks following branching deregulation in the United States during the 1990s and 2000s. Further, our evidence shows that these banks take into account the local risks in potential target regions: they expand more into counties where risks are relatively high and positively correlated with risks in their home region. This suggests that these banks do not only diversify but also build on their expertise in local risks when they expand into new regions.
Subjects: 
banking
geographic expansion
deregulation
locally non-diversifiable risk
catastrophic risk
JEL: 
G21
G28
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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