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Alberto Plazzi
SFI Faculty Member
Associate Professor of Finance

Alberto Plazzi is Associate Professor of Finance at the Università della Svizzera italiana and held an SFI Junior Chair from 2010 to 2014. He obtained his PhD in Finance from the University of California, Los Angeles. Prof. Plazzi is a regular speaker at finance conferences worldwide and his papers have been published in top academic journals.

Listen to Prof. Alberto Plazzi speak about his research.

Research Interests:
His research interests include empirical asset pricing, institutional investor behavior, and real estate finance.
Recent Research:
In a recent paper, Prof. Plazzi and his coauthor examine the drivers and consequences of bank diversification into non-core activities. To do so they focus on the determinants of banks’ decisions to diversify into non-core activities and quantify the effect of such diversification on banks’ core intermediation capability. Panel data covering 3’000 unique US banks over the period 1987 to 2014 reveals that, over time, banks have diversified into non-core activities and that income from these activities now accounts for most of the sector’s revenue. Further analysis also shows that non-core income offsets risks elsewhere in banks’ balance sheets, and that better diversification is associated with higher profitability, higher average credit supply, and lower financial constraints. However, diversification does not translate into real reductions in risk, as diversification benefits are limited to periods when the economy is not in recession. The quest for diversification also increases banks’ exposure to correlation risk – a risk which arises because of unexpected changes in the relationship between core and non-core incomes.