There are systematic differences between the vulnerabilities of different types of banks, according to a new working paper published by the International Monetary Fund. While banks with weaker structural liquidity and higher leverage, as well as banks which took on more risk, were more likely to fail in the aftermath of the financial crisis, the impact of these factors was not uniform across the banking sector. The paper finds that smaller domestically-oriented banks were more susceptible to liquidity risks, while large cross-border banks were more affected by leverage, exposing them to insolvency risk because of inadequate capital bases. The regulatory implication is that supervisors should place a higher emphasis on ensuring that capital buffers at large, systemically important banks are in accordance with their levels of risk taking.