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 …

Since World War II six risk-sharing institutions to stimulate foreign investment have been established by the U …

worth, the evaporation of liquidity and rising risk premia are the key channels through which geopolitical uncertainty …