Template-Type: ReDIF-Paper 1.0 Author-Name: Mariarosa Borroni Author-X-Name-First: Mariarosa Author-X-Name-Last: Borroni Author-Email: mariarosa.borroni@unicatt.it Author-Workplace-Name: DISCE, Università Cattolica Author-Name: Simone Rossi Author-X-Name-First: Simone Author-X-Name-Last: Rossi Author-Email: simone.rossi@unicatt.it Author-Workplace-Name: DISCE, Università Cattolica Title: Does revenue diversification still matter in banking? Evidence from some European countries Abstract: Following a common wisdom in banking, revenue diversification is likely to produce a "portfolio-effect" in bank income statement, enhancing the creation of greater and more stable profits. We test this hypothesis on a sample of 110 large commercial, saving and cooperative banks headquartered in 8 EMU countries for the period 2005-2013. Results indicate that diversification strategies have had a role in determining banks profitability only for selected subsamples (and in particular for commercial and saving banks); on the contrary, efficiency and credit portfolio quality have been the main drivers of profits in the period under examination. We contribute to previous literature using a cross-country balanced dataset that covers both the pre-crisis and the following economically troubled periods. Topics underlying this work - and empirical results - have relevant policy implications from a managerial and regulatory point of view. Length: 32 pages Creation-Date: 2017-03 Publication-Status: File-URL: http://dipartimenti.unicatt.it/dises-dises_wp_17_123.pdf File-Format: Application/pdf File-Function: First version, 2017 Number: dises1723 Classification-JEL: G21, L25 Keywords: Bank performance, Revenue diversification Handle: RePEc:ctc:serie2:dises1723