Search: solvency

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1–2 of 2 collapsed search results for 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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Conclusions

1 Jul 1992 RDP 9208
Adrian Blundell-Wignall and Marianne Gizycki
Risks concerning the solvency of corporate clients appear to have been reflected in normal variations in the risk premia component of lending rates over the business cycle, rather than by rationing
https://www.rba.gov.au/publications/rdp/1992/9208/conclusions.html

Business Credit and Investment

1 Jul 1992 RDP 9208
Adrian Blundell-Wignall and Marianne Gizycki
The second aspect of agency costs is their cyclical nature. They are likely to decline when borrowers are more solvent, and rise as solvency declines (Bernanke and Gertler (1989)). ... Solvency is a function of factor prices and profits, which are driven
https://www.rba.gov.au/publications/rdp/1992/9208/business-credit-and-investment.html