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Specialization in Banking

KRISTIAN BLICKLE et al.

The Journal of Finance2026https://doi.org/10.1111/jofi.70032article
FT50UTD24AJG 4*ABDC A*
Weight
0.50

Abstract

Using supervisory data on the loan portfolios of large U.S. banks, we document that these banks specialize by concentrating their lending disproportionately in a few industries. This specialization is consistent with banks having industry‐specific knowledge, reflected in reduced risk of loan defaults, lower aggregate charge‐offs, and higher propensity to lend to opaque firms in the preferred industry. Banks attract high‐quality borrowers by offering generous loan terms in their specialized industry, especially to borrowers with alternative options. Banks focus on their preferred industry in times of instability and relatively lower Tier 1 capital as well as after surges in deposits.

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https://doi.org/https://doi.org/10.1111/jofi.70032

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@article{kristian2026,
  title        = {{Specialization in Banking}},
  author       = {KRISTIAN BLICKLE et al.},
  journal      = {The Journal of Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1111/jofi.70032},
}

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Specialization in Banking

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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