interconnectedness on the banks' failure probability can be alleviated if bank capital regulation is properly designed. This paper … supports the conclusion in Allen and Gale (2000) that a complete financial system in which each bank is connected to all the …

This paper studies how CEO social networks affect bank risk-taking. Using a sample of 481 publicly traded U.S. banks …, we find that bank risk increases with CEOs' social networks. Our results are robust with a bank fixed-effects model and a … difference-in-difference approach, as well as with various alternative bank risk measures. Alternative explanations such as …