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


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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