Mapping the Role of Loan Portfolio Diversification in Banking Institutions: A Bibliometric-Systematic Literature Review

This chapter presents a comprehensive review of studies on the role of loan portfolio diversification in banking institutions, employing a bibliometric-systematic literature review (B-SLR) approach. The authors analyzed 865 Scopus and 349 Web of Science documents from 1991 to 2023 following Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. The authors identify three distinct evolutionary phases: the Foundational Phase (1991–2000), establishing early theoretical groundwork; the Growth Phase (2001–2010), showing significant expansion coinciding with the 2008 financial crisis; and the Maturity Phase (2011–2023), demonstrating robust scholarly productivity. The authors’ synthesis identifies critical factors influencing diversification strategies and highlights mixed empirical evidence regarding performance and stability impacts. These findings inform both banking practice and regulatory policy development.