Before revision:  We find that , within realistic parameters, our model identifies a significant portion of the actual failed banks from the FDIC failed bank database from 2008 to 2011.
After revision:  We find that , within realistic parameters, our model identifies a significant portion of the actual failed banks reported by Federal Deposit Insurance Corporation. The results suggest that this model could be useful for systemic risk stress testing for financial systems. The model also identifies that commercial rather than residential real estate assets are major culprits for the failure of over 350 US commercial banks during 2008-2011.