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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.

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Behaviour of the Financial Ratios

1 Dec 1992 RDP 9216
Philip Lowe and Geoffrey Shuetrim
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/1992/9216/behaviour-of-the-financial-ratios.html
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A Comparison of Indicators of Financial System Stability

31 Dec 1999 RDP 1999-06
Chay Fisher and Christopher Kent
to bank insolvency.
https://www.rba.gov.au/publications/rdp/1999/1999-06/comparison-of-indicators-of-financial-system-stability.html