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New York Fed: 'Bank Failures: The Roles of Solvency and Liquidity'
February 17, 2026
NEW YORK, Feb. 17 (TNSLrpt) -- The Federal Reserve Bank of New York issued the following staff report (No. 1181) in Feb. 2026 by Sergio Correia, Stephan Luck and Emil Verner entitled "Bank Failures: The Roles of Solvency and Liquidity."

Here is the abstract:

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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 . . .

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