Bank Failures: The Roles of Solvency and Liquidity
Abstract
In this review, we synthesize the empirical evidence on illiquidity and insolvency as causes of bank failures and discuss what these findings imply for policies meant to address the incidence and consequences of financial crises.
Fields of Study & Subjects
Banking stability
regulation
efficiency
Corporate Insolvency and Governance
Financial Distress and Bankruptcy Prediction
Publication details
- Journal / source
- Federal Reserve Bank of Richmond Working Papers
- Volume
- 26
- Issue
- 02
- Pages
- 1–37
- Publication date
- 26 February 2026
- Language
- EN