Ven Phuoc LuuDuc Hong Thi PhanHuy Quoc Bui2026-10-192026-10-192026-03-0510.3390/jrfm19030189https://dspace-cris.utar.edu.my/handle/123456789/11787This study examines the influence of diversification on commercial bank performance, specifically considering the role of monetary policy and shifting macroeconomic conditions. PRISMA 2020-based systematic literature review was conducted using Scopus data from 2006–2025. Bibliometric analysis using VOSviewer 1.6.20 and RStudio 4.4.3 was employed to identify key themes and citation patterns. Findings are heterogeneous and context-dependent: diversification can improve profitability and valuations in some settings, yet may increase earnings volatility and reduce risk-adjusted performance in others. In particular, the impact of monetary policy is identified as significant yet mediated by broader macroeconomic factors. These insights assist bank managers in aligning strategies with economic landscapes and aid policymakers in designing regulations adaptive to macroeconomic fluctuations. This study contributes a comprehensive synthesis of diversification strategies, emphasizing the often-overlooked interplay with monetary policy and providing a future research agenda. © 2026 by the authors.en-USbank performancebibliometric analysisdiversificationmonetary policysystematic reviewtext::journal::journal article::review article