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New York Fed: 'Bank Economic Capital'
March 19, 2025
NEW YORK, March 19 (TNSres) -- The Federal Reserve Bank of New York issued the following staff report (No. 1144) in March 2025 by Beverly Hirtle and Matthew Plosser entitled "Bank Economic Capital."

Here are excerpts:

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Conventional measures of bank solvency fail to account for the unique liquidity risks posed by deposits. Using public regulatory data, we develop a novel measure, economic capital, that jointly quantifies the impact of credit, . . .

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