Evidence from a Risk-Return Driven Cost Function” 30 suggests that large institutions may be better able to manage risk more efficiently because of “technological advantages, such as diversification and the spreading of information...and other costs that do  26  International Monetary Fund (2014), Global Financial Stability Report (Washington, D.C.: IMF, April), chapter 3.
27  Luc Laeven, Lev Ratnovski, and Hui Tong (2014), “Bank Size and Systemic Risk (PDF),” International Monetary Fund Staff Discussion Note 1404, May. 28  Large banks also hold less capital than small banks because they are more diversified – for example, small U.S. banks have larger geographical concentrations and larger single-name concentrations than larger banks.