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RBA Glossary definition for solvent institutions

solvent institutions – Institutions that maintain solvency (i.e. they can meet their financial obligations as they fall due).

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Methodology

1 Nov 1999 RDP 1999-09
Marianne Gizycki and Brenton Goldsworthy
Financial institutions that are granted a banking licence benefit from being called a ‘bank’. ... For this reason, the firm can still be solvent with a capital-asset ratio less than zero.
https://www.rba.gov.au/publications/rdp/1999/1999-09/methodology.html