The failure of a bank can have very diverse consequences. Investors, individual entrepreneurs and companies can lose their deposits in excess of the insured amounts. In addition, the increase in bank failures could have a particular impact on the economic stability and overall prosperity of the country. It is therefore crucial to identify the factors that can influence the sustainability of banks and potentially lead to bank failures. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay In recent years, extensive research has been carried out to analyze the agents that can explain bank defaults. This article uses the most recent data to examine the specific factors that could jeopardize a bank's solvency. The investigation revealed the correlation between certain financial ratios and bank failure during economic crises. Additionally, a link was found between bank defaults and the geographic location of financial institutions that experienced insolvency. The report will further disclose all findings collected. This report aims to analyze the financial indices of failed banks in the United States, which took place at the time of the Great Recession and lasted for several years. In the first part of the report, a general overview of bankruptcies in different years will be presented as well as the geographical distribution patterns of closed banks. The second part of the report will demonstrate the link between different bank capital ratios and possible bank failures during financial crises. The dataset used for the analysis is from 2007 to 2012. The interpretation of the results received will be supported by reputable academic resources. General overview and geographical distribution patterns of failures. By carrying out the analyzes of the data provided, it can be concluded that the highest frequency of bank defaults decreased over the three years between 2009 and 2011. The number of defaults amounted to 140 in 2009, 156 in 2010 and 92 in 2011. What is remarkable is that the highest percentage of defects was recorded in 2010 and the fact that the mean, mode and median were equal in that year proves this statement. The results are relevant at this time since many U.S. banks faced tough times and experienced loan defaults following the Great Recession. Regarding the geographic patterns of American bank failures, we observe a heterogeneous or dissimilar distribution. In particular, a number of banks in some states did not suffer, due to their policy of having more isolationist investment portfolios. In fact, the highest proportion of bank failures occurred in the following states: Georgia, Florida, Illinois and California. The default numbers for these regions were 85, 66, 55, and 38, respectively. Key factors behind these significant defaults include rapid loan portfolio growth, high concentrations in commercial real estate (CRE), particularly construction and development (C&D) loans, heavy reliance on non-core financing, including brokered deposits, and insufficient capital to cover losses. The number of failures in Georgia, Florida, Illinois and California was significantly higher than the average indicators obtained by the analysis of other states. Thus, for all other states presented in the sample,.