interconnectedness on the banks' failure probability can be alleviated if bank capital regulation is properly designed. This paper …This paper proposes that whether interconnectedness among banks leads to financial instability depends on banks … and the banks' failure probability. In the model, banks adopt the Value-at-Risk rule to make the capital structure …

This paper studies how CEO social networks affect bank risk-taking. Using a sample of 481 publicly traded U.S. banks … channels through which social networks affect bank risk and find that CEO social networks increase bank risk more when banks …, we find that bank risk increases with CEOs' social networks. Our results are robust with a bank fixed-effects model and a …