Papers such as Goldstein and Pauzner (2005), Wagner(2007), Cai and Thakor (2008), Gatev et al. (2009), Acharya et al.(2010), Acharya and Viswanathan (2011), Gorton and Metrick(2011), He and Xiong (2012a,b), and Acharya and Mora (in press)look into the matter from various angles and derive, mostly froma theoretical perspective, results which show the influence liquidityand credit risk have on each other and also how this interactioninfluences bank stability.