Correia, Sergio; Luck, Stephan; Verner, Emil - 2026
Bank failures can stem from runs on otherwise solvent banks or from losses that render banks insolvent, regardless of … withdrawals. Disentangling the relative importance of liquidity and solvency in explaining bank failures is central to … bank failures. Bank failures-both with and without runs-are almost always related to poor fundamentals. Low recovery rates …