Using count data on the number of bank failures in US states during the 1960 to 2006 period, this paper endeavors to … instruments to absorb potential endogeneity between the number of bank failures and economic and regulatory conditions. Results … suggest that bank failures are not merely self-fulfilling prophecies but relate systematically to inflation as well as to …

the funding liquidity of liabilities, for 2882 bank holding companies over 2002 to 2014. The aggregate LMI decreases from … system in early 2007. Moreover, LMI predicts a bank's stock market crash probability and borrowing decisions from the … government during the financial crisis. The LMI is therefore informative about both individual bank liquidity and the liquidity …

liquidity of assets and the funding liquidity of liabilities. We construct the LMIs for 2882 bank holding companies during 2002 … the government during the financial crisis. Thus the LMI measure is informative regarding both individual bank liquidity …