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29-06-2021
Business

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Discuss whether a commercial bank should specialize or diversify in terms of the services it provides.

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KishanDev KishanDev

29-06-2021

Answer:

The authors find that sector specialization has an overall positive effect on banks' performance. In contrast, Bebczuk and Galindo (2007) find for Argentina that banks with a diversified credit portfolio have fewer non-performing loans.

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