The Janus face of bank geographic complexity

We study the relationship between bank geographic complexity and risk using a unique dataset of 96 global holding companies (BHCs) over 2008–2016. From data on affiliate network internationally active banking entities, we construct measure coverage for each BHC. find that higher heightens banks’ capacity to absorb local economic shocks, reducing their risk. However, can also help banks soften impact prudential regulation, increasing Bank therefore has Janus face, decreasing some but other aspects