Purpose
The purpose of this paper is to examine the impact of income diversification on bank performance in BRICS countries as a structural response to concentration risk. The authors argue that effectiveness of this approach is conditional upon its extent and quality. To understand the role of firm-specific characteristics on effectiveness of diversification, the authors examine this relationship across asset sizes.
Design/methodology/approach
An unbalanced panel data set of 169 BRICS banks is sampled over the period 2001–2015. Fixed effect models and system generalized method of moments techniques are used to test the relationship between diversification and bank performance using alternate measures.
Findings
Results indicate a positive relationship between diversification and performance measured in terms of bank risk and returns for medium and large size banks. However, for small banks this relationship is negative suggesting a “diversification discount.”
Originality/value
The study indicates that diversification as a risk mitigating tool can be effective but the managers and regulators should not emphasize on the “one-size-fits-all” approach for all banks. Policy frameworks for controlling concentration risk should be developed keeping in mind factors like bank size, customer base and financial leverage which brings variations to the risk profile of banks.
CdTe nanocrystals sequestered and passivated in an amorphous TiO 2 thin film matrix have been prepared by RF sputtering from a composite TiO 2 :CdTe target. The CdTe nanocrystal size and volume fraction increases from 15 to 40 nm and 2 to 20% respectively as the film thickness increases, typically from 0.05 to 0.25 µm. A systematic dependence of the optical band edge on the CdTe nanocrystal size shows a strong quantum confinement effect. The optical edge shifts are significantly higher than the theoretical prediction based on single-particle confinement of decoupled electrons and holes. This is understood on the basis of nucleation-controlled growth of CdTe nanocrystals by direct vapour phase condensation, in which small nuclei are rapidly passivated by TiO 2 depositing at much higher rates. The nano-sized CdTe growth island thus formed comprises of several TiO 2 passivated nanocrystals. Electrical conduction behaviour of these films show that tunnelling between the CdTe nanocrystals is not a dominant mechanism, as a three-dimensional network is not realized due to small thickness and lower coverage. The current transport is essentially space-charge-limited. The injection of electrons from nano-sized CdTe crystals follows spherical radial space charge flow which modifies the usual power law dependence from quadratic to 3/2. The analytical description of the current conduction process in composite CdTe:TiO 2 is discussed.
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