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banks failLiberty Street Economics
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78% Informative
Working paper: Failing banks are characterized by rising asset losses, deteriorating solvency, and an increasing reliance on expensive noncore funding.
Problems in failing banks are often the consequence of rapid asset growth in the preceding decade .
Spikes in bank failures have characterized the major financial crises in U.S. history, from the Panic of 1893 to the Great Depression .
The typical failing bank goes through a boom before entering a bust.
As failing banks boom, they increasingly finance themselves with expensive forms of noncore funding.
As failure approaches, these banks experience rising losses and deteriorating solvency.
All three patterns point to the central role of deteriorating fundamentals and rising insolvency risk.
VR Score
89
Informative language
96
Neutral language
31
Article tone
semi-formal
Language
English
Language complexity
54
Offensive language
possibly offensive
Hate speech
not hateful
Attention-grabbing headline
not detected
Known propaganda techniques
not detected
Time-value
long-living
External references
1
Source diversity
1
Affiliate links
no affiliate links