The failure of a bank can lead to a wide range of effects. Investors, individual entrepreneurs and companies can lose their deposits that exceed the insured amounts. Furthermore, the increase in bank failures could have a particular impact on the overall economic stability and prosperity of the country. Therefore, it is crucial to identify factors that can influence bank sustainability and potentially lead to bank failure. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Extensive research has been conducted in recent years analyzing the agents that can explain bank defaults. This paper uses the latest data to examine specific factors that could put a bank's solvency at risk. The investigation revealed the correlation between specific financial ratios and the failure of banks during the period of economic crisis. Furthermore, an interconnection was found between bank defaults and the geographic location of financial institutions that experienced defaults. The report will describe all the findings collected in more detail. This report aims to analyze the financial ratios of bank failures in the United States that occurred during the Great Recession and lasted for several years. In the first part of the report, the general picture of failures in different years will be presented and the geographical distribution models of closed banks will be discussed. The second part of the report will demonstrate the connection between different bank capital ratios and possible bank failures in times of financial crisis. The dataset used for the analysis is from 2007 to 2012. The interpretation of the results received will be supported by reliable academic resources. General overview and models of geographical distribution of bankruptcies By performing the analyzes of the data provided, it can be concluded that the highest frequency of bank defaults occurred in the three-year period 2009-2011. The number of failures was 140 in 2009, 156 in 2010 and 92 in 2011. What is noteworthy is that the highest percentage of defaults was recorded in 2010 and the fact that mean, mode and median were equal in that This year proves this statement. The findings are relevant to the times as many American banks faced difficult times and experienced defaults as a result of the Great Recession. Regarding the geographic patterns of US bank failures, a promiscuous or dissimilar distribution is observed. Notably, many banks in some states have not suffered, due to their more isolationist investment portfolio policies. In fact, the highest percentage of bank failures emerged in the following states: Georgia, Florida, Illinois and California. The default numbers for those regions were 85, 66, 55, and 38, respectively. Major drivers of such significant failures include the rapid growth of the loan portfolio, high concentrations in the commercial real estate (CRE) sector, particularly loans for construction and development (C&D), heavy reliance on non-core financing, particularly brokered deposits, and insufficient capital to cover losses. The number of bankruptcies in Georgia, Florida, Illinois and California was significantly higher than the average indicators obtained through the analysis of the other states. Therefore, for all other states presented in the sample the mean, median, and failure mode were 6, 5, and one, respectively. Academic research says that falling behind the fact that some states have suffered much more in terms of.