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Journal Article
Liquidity mismatch helps predict bank failure and distress
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.
Journal Article
Weakly capitalized banks slowed lending recovery after recession
The reluctance to lend played out particularly among a subset of banks?often larger institutions with very low ratios of capital to assets.