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What's the difference between illiquid and insolvent banks?Illiquid banks are heavily indebted whereas insolvent banks have savings in overseas banksIlliquid banks have enough assets to cover their liabilities, whereas insolvent banks do not.Illiquid banks have enough cash to satisfy the reserve requirement whereas insolvent banks must borrow cash on the overnight marketIlliquid banks are regulated whereas insolvent banks are unregulated
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