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From Balance Sheets to Bank Failures: The Reality of Banking Stability

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Published March 28, 2024

Amit Seru, Senior Fellow at the Hoover Institution, delves into the complexities of banking in the United States.  Balance sheet composition and the management between short-term deposits and long-term investments are just a few factors that contribute to a bank’s profitability.  But recent bank crises like the collapse of Silicon Valley Bank highlight the risks that can emerge from the mismanagement of assets and liabilities.  Seru provides a deeper understanding of banking principles that can help avoid more bank failures and future financial calamities.

 

 

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