Search: solvent institutions
RBA Glossary definition for solvent institutions
solvent institutions – Institutions that maintain solvency (i.e. they can meet their financial obligations as they fall due).
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Contingent Claim Model of a Bank
1 Mar 1993
RDP
9302
Equity in the model is a contingent claim (a positive payoff to equity is contingent upon the bank being solvent at T), and its discounted value at any earlier point in ... Alternatively, a purchaser may be located for the failed institution; the
https://www.rba.gov.au/publications/rdp/1993/9302/contingent-claim-model-bank.html