Liquidity Mismatch Helps Predict Bank Failure and Distress
4 Pages Posted: 17 Aug 2015
Date Written: 2015
Liquidity mismatch—the risk of a bank being unable to fund increases in assets or meet its obligations as they come due—increased in the U.S. banking sector during the run-up to the financial crisis, especially at the largest institutions, contributing to bank failure and distress.
Suggested Citation: Suggested Citation