---
title: Measuring the stability of the banking system: capital and liquidity at risk with solvency-liquidity interactions
url: https://www.ml-quant.com/papers/repec/boe-boeewp-023262/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-16
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:boe:boeewp:023262
source_url: https://econpapers.repec.org/RePEc:boe:boeewp:023262
featured: 2026-10-16
citations: unknown
topic: Risk, Credit & Banking
---


# Measuring the stability of the banking system: capital and liquidity at risk with solvency-liquidity interactions

A stochastic balance-sheet model quantifies how solvency and liquidity risks interact, finding that amplification effects from behavioral responses explain roughly one-third of default risk.

- Source: https://econpapers.repec.org/RePEc:boe:boeewp:023262
- Identifier: RePEc:boe:boeewp:023262
- Released: 2026-10-07
- First featured: Quant Letter No. 135 (2026-10-16): https://www.ml-quant.com/issues/2026-10-16/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking
- Authors: Giovanni Covi, Tihana Škrinjarić

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