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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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Consolidation: Efficiency and System Stability

31 May 1999 RDP 1999-05
Christopher Kent and Guy Debelle
The net effect across all institutions is no significant gain in cost performance. ... for example, the government may provide some form of support to failed institutions.
https://www.rba.gov.au/publications/rdp/1999/1999-05/consolidation-efficiency-and-system-stability.html