Liquidity Mismatch Helps Predict Bank Failure and Distress
4 Pages Posted: 17 Aug 2015
Date Written: 2015
Abstract
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
Cooke, J.B. and Koch, Christoffer and Murphy, Anthony, Liquidity Mismatch Helps Predict Bank Failure and Distress (2015). Economic Letter, Vol. 10, Issue 6, pp. 1-4, 2015, Available at SSRN: https://ssrn.com/abstract=2643945
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