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.
Search Results
Contagion Analysis
29 Sep 2015
RDP
2015-02
i. /K. i. > ρ. K. , bank i is deemed to be in secondary solvency stress. ... This is sufficient to push it into solvency stress after four exogenous defaults.
https://www.rba.gov.au/publications/rdp/2015/2015-02/contagion-analysis.html
Central Counterparty Loss Allocation and Transmission of Financial Stress
18 Mar 2015
RDP
2015-02
Following Heath, Kelly and Manning (2013), the paper examines liquidity and solvency risk under alternative clearing configurations, but extends the analysis in two main ways.
https://www.rba.gov.au/publications/rdp/2015/2015-02.html
Policy Implications
29 Sep 2015
RDP
2015-02
Download the Paper 1.26. MB. The analysis in Section 4 gives rise to policy messages in three broad areas: (i) the trade-off between liquidity and solvency risk as collateral ... In the results presented in Section 4.2, there is little evidence of such
https://www.rba.gov.au/publications/rdp/2015/2015-02/policy-implications.html
Background and Relevant Literature
11 Sep 2015
RDP
2015-02
hedges – such loss allocation could stress the solvency of participants.
https://www.rba.gov.au/publications/rdp/2015/2015-02/background-relevant-literature.html