{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,7,30]],"date-time":"2026-07-30T10:18:56Z","timestamp":1785406736262,"version":"3.56.0"},"reference-count":54,"publisher":"MDPI AG","issue":"6","license":[{"start":{"date-parts":[[2026,5,31]],"date-time":"2026-05-31T00:00:00Z","timestamp":1780185600000},"content-version":"vor","delay-in-days":0,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"funder":[{"DOI":"10.13039\/501100001809","name":"National Natural Science Foundation of China","doi-asserted-by":"publisher","award":["72101151"],"award-info":[{"award-number":["72101151"]}],"id":[{"id":"10.13039\/501100001809","id-type":"DOI","asserted-by":"publisher"}]},{"DOI":"10.13039\/501100001809","name":"National Natural Science Foundation of China","doi-asserted-by":"publisher","award":["72301176"],"award-info":[{"award-number":["72301176"]}],"id":[{"id":"10.13039\/501100001809","id-type":"DOI","asserted-by":"publisher"}]},{"award":["72101151"],"award-info":[{"award-number":["72101151"]}],"id":[{"id":"https:\/\/ror.org\/01h0zpd94","id-type":"ROR","asserted-by":"publisher"}]},{"award":["72301176"],"award-info":[{"award-number":["72301176"]}],"id":[{"id":"https:\/\/ror.org\/01h0zpd94","id-type":"ROR","asserted-by":"publisher"}]},{"name":"Liaoning Provincial Department of Science and Technology","award":["2026-BS-0382"],"award-info":[{"award-number":["2026-BS-0382"]}]},{"award":["2026-BS-0382"],"award-info":[{"award-number":["2026-BS-0382"]}],"id":[{"id":"https:\/\/ror.org\/02f09cx53","id-type":"ROR","asserted-by":"publisher"}]}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Entropy"],"abstract":"<jats:p>Prolonged downturns in the global economy have simultaneously increased banks\u2019 credit risk exposures and intensified the need for effective liquidity management. This study develops a dynamic agent-based financial network comprising banks, depositors, firms, and the central bank to examine trade-offs in bank resolution under coupled liquidity and credit risks from the perspective of systemic stability. The simulation results show that, for liquidity risk management, when banks adopt the asset-sale strategy, both default probability and expected returns in the banking system exhibit a nonlinear pattern: they first decline and then rise as the asset depreciation ratio increases. Furthermore, at moderate levels of asset depreciation, the asset-sale strategy helps preserve heterogeneity within the banking system, thereby preventing excessive risk concentration, and performs better than the liability-expansion strategy. Regarding credit risk resolution, the debt-relief strategy significantly improves systemic stability, whereas the effectiveness of the debt-extension strategy depends critically on liquidity management conditions. Under liability-expansion scenarios, default risk initially declines but later rises as debt maturity is extended, whereas expected returns move in the opposite direction. Under asset-sale conditions, the debt-extension strategy enhances systemic stability only when the allowable number of debt extensions is sufficiently high. The analysis of strategic trade-offs indicates that combining the debt-relief strategy with the asset-sale strategy generates a positive synergistic effect and strengthens systemic resilience, whereas the interaction between the debt-extension and asset-sale strategies produces offsetting effects. These findings offer useful implications for banks and regulators in designing coordinated and adaptive frameworks for risk resolution and systemic stability.<\/jats:p>","DOI":"10.3390\/e28060618","type":"journal-article","created":{"date-parts":[[2026,6,3]],"date-time":"2026-06-03T06:17:31Z","timestamp":1780467451000},"page":"618","update-policy":"https:\/\/doi.org\/10.3390\/mdpi_crossmark_policy","source":"Crossref","is-referenced-by-count":0,"title":["Bank Resolution Trade-Offs Under Coupled Liquidity and Credit Risks: An Agent-Based Network Analysis of Systemic Stability"],"prefix":"10.3390","volume":"28","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-5187-7617","authenticated-orcid":false,"given":"Qianqian","family":"Gao","sequence":"first","affiliation":[{"name":"School of Financial Technology, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Hongjie","family":"Pan","sequence":"additional","affiliation":[{"name":"Business School, Ningbo University, Ningbo 315211, China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Yinglin","family":"Liu","sequence":"additional","affiliation":[{"name":"School of Financial Technology, Shanghai Lixin University of Accounting and Finance, Shanghai 201209, China"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-8314-7339","authenticated-orcid":false,"given":"Naixi","family":"Chen","sequence":"additional","affiliation":[{"name":"School of Economics and Management, Liaoning Petrochemical University, Fushun 113001, China"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"1968","published-online":{"date-parts":[[2026,5,31]]},"reference":[{"key":"ref_1","doi-asserted-by":"crossref","first-page":"297","DOI":"10.1016\/j.jfineco.2011.03.001","article-title":"Liquidity risk management and credit supply in the financial crisis","volume":"101","author":"Cornett","year":"2011","journal-title":"J. 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