trade access, and the costs of post-Brexit operational adjustments. Consistent with the predictions of canonical theory …

The paper studies risk mitigation associated with capital regulation, in a context when banks may choose tail risk … assets. We show that this undermines the traditional result that higher capital reduces excess risk-taking driven by limited … liability. When capital raising is costly, poorly capitalized banks may limit risk to avoid breaching the minimal capital ratio …

cooperate to improve the group's outcome by sharing their wealth in non-compulsory, non-enforceable risk-sharing arrangements …. We find that average subject behavior appears to be motivated by self-interest more than group survival. -- risk sharing …