Search: solvency

Sort by: Relevance Date
1–4 of 4 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.

Search Results

Contagion Analysis

29 Sep 2015 RDP 2015-02
Alexandra Heath, Gerard Kelly and Mark Manning
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

Policy Implications

29 Sep 2015 RDP 2015-02
Alexandra Heath, Gerard Kelly and Mark Manning
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

Central Counterparty Loss Allocation and Transmission of Financial Stress

18 Mar 2015 RDP 2015-02
Alexandra Heath, Gerard Kelly and Mark Manning
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

Background and Relevant Literature

11 Sep 2015 RDP 2015-02
Alexandra Heath, Gerard Kelly and Mark Manning
hedges – such loss allocation could stress the solvency of participants.
https://www.rba.gov.au/publications/rdp/2015/2015-02/background-relevant-literature.html