We develop a structural model of the global financial network and analyze its evolving role in facilitating risk … that this heterogeneity is key to explaining the variation in risk sharing and shock propagation both across countries and …), resulting in a weakening of international risk sharing. We provide suggestive evidence that the tightening of macroprudential …

We develop a structural model of the global banking network and analyze its role in facilitating risk sharing and … explains variation in risk sharing and amplification across countries. Moreover, we show that cross‐border loan supply has … become less elastic over time, resulting in a decline in risk sharing. While shock amplification has also declined on average …