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The study of three distinct aspects of bank risk-taking from a novel portfolio perspective is the focus of Juan Gorostiaga‘s recently defended doctoral dissertation.

The author highlights the importance of pre-existing exposure in shaping banks’ risk management incentives and its connection to two key issues: the rise in bank concentration and the extent of government guarantees coverage. These findings have significant implications for bank lending behavior and loan contract design, ultimately impacting borrowers’ corporate policy and potentially giving rise to unintended policy consequences.

The IESE Library has played its own part in Gorostiaga’s dissertation thanks to the access it has granted him to an extensive collection of articles, books and e-resources. Congratulations to the new Ph.D. and we wish him great success!