The rapid rise in interest rates across the yield curve has increased the broader public’s interest in the exposure embedded in bank balance sheets and in depositor behavior more generally. In this post, we consider a simple illustration of the potential impact of higher interest rates on measures of bank franchise value.| Liberty Street Economics
A look at bank runs and how they have been a consequence of imminent failure, rather than the original cause, for bank failures in the U.S.| Liberty Street Economics
A look at the predictability of bank failures based on simple accounting metrics from publicly available financial statements that measure insolvency risk.| Liberty Street Economics
A look at why U.S. banks fail, using a study of more than 5,000 bank failures to understand if they are caused by bank runs or deteriorating solvency.| Liberty Street Economics
The authors evaluate how deposits have evolved over the latter portion of the current monetary policy tightening cycle.| Liberty Street Economics
