The article discusses how liquidity and solvency are crucial for banks, especially during crises. It explains that a bank can be insolvent but still have enough cash, or be solvent but struggle to access cash. Liquidity is influenced by public perception and market conditions. Dealing with liquidity risk is harder than other risks because it depends on the bank's overall health and how it is viewed by others. The paper introduces concepts like market and funding liquidity, and tools to manage liquidity issues. It aims to help countries assess and manage risks in their financial systems.