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 …

Systemic risk among the network of international banking groups arises when financial stress threatens to criss …-cross many national boundaries and expose imperfect international co-ordination. To assess this risk, we apply an information … resulting modular structure reflects the flow of financial stress through the network, combining nodes that are most closely …

The global financial crises have had severe impact on various financial markets and the world economies at large. At … impacts of country governance on world economies at large …

-country dynamic spatial general equilibrium model in which the entire network of cross-border investment is endogenously determined …. Our model features cross-country heterogeneity in fundamental risk, a demand system for international assets, and … reduce world output by almost 7% and account for nearly half of the observed cross-country differences in capital stock per …