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.
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Discussion on Liquidity, Financial Crises and the Lender of Last Resort – How Much of a Departure is the Sub-prime Crisis? | Conference –…
14 Jul 2008
Conferences
But the line between illiquidity and insolvency is not clearly drawn and, as Philip illustrates in his paper, central banks have often found ex post that their liquidity support merely deferred ... insolvency or that they were in fact supporting banks
https://www.rba.gov.au/publications/confs/2008/davis-disc.html
Regulating the New Financial Markets | Conference – 1996
9 Jul 1996
Conferences
insolvency. For investment firms the case for official regulation is much less clear. ... Therefore, in the absence of regulation, imperfect consumer information and agency problems may result in a level of insolvencies exceeding the social optimum.
https://www.rba.gov.au/publications/confs/1996/dale.html
Introduction | Conference – 1996
9 Jul 1996
Conferences
This distinction is relevant to the issue of systemic risk because funds managers are not subject to insolvency risk in the same way as intermediaries. ... Traditionally the main sources of systemic risk have been viewed as related to payments-system risk
https://www.rba.gov.au/publications/confs/1996/intro-96.html
OTC Derivatives Reform: Netting and Networks | Conference – 2013
19 Aug 2013
Conferences
On the one hand, financial stability improves due to a lower probability of insolvency arising from counterparty default when collateral coverage is higher.
https://www.rba.gov.au/publications/confs/2013/heath-kelly-manning.html
Bank Funding and Financial Stability | Conference – 2013
19 Aug 2013
Conferences
2. /D is the return on unsecured debt. As θ. rises, insolvency becomes more likely. ... If the probability of a run being unsuccessful is λ. , and the probability of avoiding insolvency is 1 N.
https://www.rba.gov.au/publications/confs/2013/gai-haldane-kapadia-nelson.html
Liquidity, Financial Crises and the Lender of Last Resort – How Much of a Departure is the Sub-prime Crisis? | Conference – 2008
14 Jul 2008
Conferences
This delays the legal insolvency of an institution and prevents fire sales and calling of loans. ... LOLR needs to act rapidly before illiquidity becomes insolvency and before such a panic begins to take hold.
https://www.rba.gov.au/publications/confs/2008/davis.html
Discussion | Conference – 2015
19 Mar 2015
Conferences
Additionally, the participant went on to describe the nature of business insolvency proceedings in Australia, noting that about 40 per cent of firms that enter insolvency have no assets, and another ... This implies that there is no scope to restructure
https://www.rba.gov.au/publications/confs/2015/nicholls-orsmond-disc.html
Monetary and Macroprudential Policies: The Case for a Separation of Powers | Conference – 2018
12 Apr 2018
Conferences
insolvency. Meanwhile, real short-term interest rates were generally lower than those in the United Kingdom (Figure 8).
https://www.rba.gov.au/publications/confs/2018/broadbent.html
Discussion on OTC Derivatives Reform: Netting and Networks | Conference – 2013
19 Aug 2013
Conferences
insolvency. And while higher collateral requirements reduce the risk of failure by reducing counterparty risk, they increase the risk of illiquidity. ... I do have one other policy issue. The model involves banks failing, due to insolvency or illiquidity,
https://www.rba.gov.au/publications/confs/2013/heath-kelly-manning-disc.html
Discussion | Conference – 2018
12 Apr 2018
Conferences
In this range, institutions that have a lending book with thin spreads over the bank rate would face depressed earnings and possible insolvency if the policy rate was lowered beyond the
https://www.rba.gov.au/publications/confs/2018/broadbent-disc.html