Search: insolvency
RBA Glossary definition for insolvency
insolvency – A situation where an entity has insufficient assets to cover the value of its liabilities, resulting in an inability to meet its financial obligations as they fall due.
Search Results
Contagion Analysis
29 Sep 2015
RDP
2015-02
to meet a CCP's obligations to non-defaulted participants, the CCP must proceed to loss allocation in order to avoid its own insolvency.
https://www.rba.gov.au/publications/rdp/2015/2015-02/contagion-analysis.html
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The Evolution of Corporate Financial Structure: 1973-1990
31 Jan 2006
RDP
PDF
777KB
While this assumption is true if all other things are constant, higher leverage does not necessarily imply a higher probability of insolvency or corporate failure.
https://www.rba.gov.au/publications/rdp/1992/pdf/rdp9216.pdf
Productivity and Inflation
2 Dec 2009
RDP
PDF
223KB
PRODUCTIVITY AND INFLATION. Tim Bulman and John Simon. Research Discussion Paper 2003-10. September 2003. Economic Research Department Reserve Bank of Australia. We would like to thank Badi Baltagi, Anthony Richards, Malcom Edey, Alex Heath and the
https://www.rba.gov.au/publications/rdp/2003/pdf/rdp2003-10.pdf
Background
22 Nov 2016
RDP
2016-07
However, CCPs have additional procedures to prevent insolvency in this case, such as calling for additional resources from surviving participants.
https://www.rba.gov.au/publications/rdp/2016/2016-07/background.html
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Central Counterparty Loss Allocation and Transmission of Financial Stress
16 Mar 2015
RDP
PDF
1285KB
One benefit of this approach, as Gibson (2013) demonstrates, is that VMGH mimics the allocation of losses to creditors that would otherwise arise in insolvency.
https://www.rba.gov.au/publications/rdp/2015/pdf/rdp2015-02.pdf
The Efficiency of Central Clearing: A Segmented Markets Approach
24 Oct 2016
RDP
PDF
2054KB
However, CCPs have additional. procedures to prevent insolvency in this case, such as calling for additional resources from.
https://www.rba.gov.au/publications/rdp/2016/pdf/rdp2016-07.pdf
Model Generalisations and Extensions
9 Oct 2019
RDP
2019-10
The policy is unable to disincentivise their liquidity risk-taking, and, despite being close to insolvency, does not leave them insolvent ex post. ... Avoiding ex post insolvency has costs and benefits. Work on gambling for resurrection argues that
https://www.rba.gov.au/publications/rdp/2019/2019-10/model-generalisations-and-extensions.html
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Results
1 Nov 1999
RDP
1999-09
These results suggest that the stock market based measure of operating risk has increased over the sample period, mitigating to some extent the positive effect of increased capital on insolvency risk.
https://www.rba.gov.au/publications/rdp/1999/1999-09/results.html
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Currency Crises and Macroeconomic Performance
2 Dec 2009
RDP
PDF
135KB
Caprio Jr G and D Klingebiel (1996), ‘Bank Insolvency: Bad Luck, Bad Policy, or Bad Banking?’, in M Bruno and B Pleskovic (eds), Annual World Bank Conference on Development Economics, World
https://www.rba.gov.au/publications/rdp/2002/pdf/rdp2002-08.pdf
Conclusion
31 Dec 2001
RDP
2001-07
During the 1890s, however, broader considerations concerning the Associated Banks’ ability to provide support largely overrode distinctions between illiquidity and insolvency. ... During the 1930s, the Commonwealth Bank relied heavily on banks' ability
https://www.rba.gov.au/publications/rdp/2001/2001-07/conclusion.html
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