Search: solvency
RBA Glossary definition for solvency
solvency – The capacity of an entity to meet its financial obligations as they fall due. Solvency may be expressed as maintaining positive net-tangible assets.
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Appendix A: Financial Disturbances in Australia – A Chronology
31 Dec 2001
RDP
2001-07
1987. Challenge Bank. These banks were subject to rumours about their solvency leading to deposit runs.
https://www.rba.gov.au/publications/rdp/2001/2001-07/appendix-a.html
The 1970s
31 Dec 2001
RDP
2001-07
support. The banks that dealt directly with the non-banks were better placed to assess their underlying solvency.
https://www.rba.gov.au/publications/rdp/2001/2001-07/1970s.html
Theoretical Approaches to Lender-of-last-resort Policy
31 Dec 2001
RDP
2001-07
In many cases, liquidity support is sought at the very time that the market itself is having difficulty assessing the solvency of an institution (Goodhart 1985).
https://www.rba.gov.au/publications/rdp/2001/2001-07/theoretical-approaches-to-lender-of-last-resort-policy.html
The 1890s Depression
31 Dec 2001
RDP
2001-07
Four main factors hindered the Associated Banks' ability to act as an effective lender of last resort: competition between banks, doubts about the fundamental solvency of those banks that suspended payment,
https://www.rba.gov.au/publications/rdp/2001/2001-07/1890s-depression.html