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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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Regulatory Policy Issues in Australia

7 Dec 2006 Conferences PDF 53KB
RBA Conference Volume 1996
https://www.rba.gov.au/publications/confs/1996/pdf/thompson.pdf

Prudential Supervision and the Changing Financial System

28 Mar 1996 Speech
Graeme Thompson
Talk by Graeme Thompson to the Monash University Law School Foundation, Melbourne
https://www.rba.gov.au/speeches/1996/sp-dg-280396.html

Overview Financial systems in Australia and internationally are resilient ...

4 Nov 2020 FSR PDF 214KB
With economies experiencing large contractions in output, the focus has shifted from liquidity to the solvency of borrowers as expected defaults will result in credit losses for lenders.
https://www.rba.gov.au/publications/fsr/2020/oct/pdf/00-overview.pdf

Model Framework

20 Sep 2022 RDP 2022-03
Nicholas Garvin, Samuel Kurian, Mike Major and David Norman
This reflects that our focus in this model is on bank solvency (i.e.
https://www.rba.gov.au/publications/rdp/2022/2022-03/model-framework.html

Payments System Board

18 Sep 2023
Solvent parties would then receive little in return for their payments to the failed institution, putting them under liquidity pressures and threatening their own solvency.
https://www.rba.gov.au/about-rba/boards/psb-board.html

The Global Financial Environment

9 Oct 2020 FSR – October 2020
Financial Stability Review – October 20201. The Global Financial Environment. The COVID-19 pandemic continues to constrain global economic activity and pose risks to financial stability. Since the previous. Review. , the balance of risks has
https://www.rba.gov.au/publications/fsr/2020/oct/global-financial-environment.html

Overview

9 Oct 2020 FSR – October 2020
With economies experiencing large contractions in output, the focus has shifted from liquidity to the solvency of borrowers as expected defaults will result in credit losses for lenders.
https://www.rba.gov.au/publications/fsr/2020/oct/overview.html

Fiscal, Monetary and Macroprudential Regimes: Incentives-Values Compatibility in Constitutional Democracies

28 Dec 2022 Conferences PDF 375KB
RBA Annual Conference 2022
https://www.rba.gov.au/publications/confs/2022/pdf/rba-conference-2022-tucker.pdf

Box A: Small Banks in China

9 Aug 2019 SMP – August 2019
its solvency and reported misappropriation of funds.
https://www.rba.gov.au/publications/smp/2019/aug/box-a-small-banks-in-china.html

Contagion Modelling and Feedback Loops

20 Sep 2022 RDP 2022-03
Nicholas Garvin, Samuel Kurian, Mike Major and David Norman
The focus of the stress testing model is purely on solvency (net worth), not liquidity. ... However, liquidity stress can have significant effects on bank solvency in some situations.
https://www.rba.gov.au/publications/rdp/2022/2022-03/contagion-modelling-and-feedback-loops.html