A large body of literature finds that managerial overconfidence increases risk-taking by financial institutions. This … paper shows that financial regulation can be effective at mitigating this type of risk. Exploiting regulatory changes … introduced after the financial crisis as a natural experiment, I find that overconfidence-induced risk-taking decreases in …

secondary asset markets. While all banks are subject to extrinsic risk, a bank's portfolio choice determines whether it is prone …

's vulnerability to periods of heightened risk and uncertainty. This paper develops a framework to evaluate such vulnerabilities. It … and explore how they are affected by domestic and global risk. We apply this framework to ten OECD economies, showing the … Kingdom, show that a substantial degree of international risk sharing can occur through current accounts and international …