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A bank is considered illiquid but solvent if: it has short - term liabilities greater than its short - term assets, but overall assets greater
A bank is considered illiquid but solvent if:
it has shortterm liabilities greater than its shortterm assets, but overall assets greater than liabilities.
it has liabilities greater than the value of its assets.
the value of its outstanding loans is greater than the value of its deposits.
it has lost its FDIC coverage.
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