Search: solvent institutions
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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Policy Discussion
27 Oct 2008
RDP
2008-06
As discussed above, situations can also emerge where providing a loan directly to a troubled, but solvent, institution may also be in the public interest. ... While financial institutions benefit from these services, these benefits are spread widely and
https://www.rba.gov.au/publications/rdp/2008/2008-06/policy-discussion.html
The First-best and the Real World
27 Oct 2008
RDP
2008-06
In this perfect world, ‘market liquidity’ would be plentiful so that assets could be readily bought and sold at their fundamental value, and ample ‘funding liquidity’ would enable solvent institutions to ... Given the limitations of the real world
https://www.rba.gov.au/publications/rdp/2008/2008-06/first-best.html
The Provision of Systemic Liquidity Services by the Public Sector
27 Oct 2008
RDP
2008-06
Doing so may also lead to financial institutions reducing their holdings of other liquid assets, while accepting assets from the institution that originated them may crowd out secondary markets because it ... A third possibility is to provide an explicit
https://www.rba.gov.au/publications/rdp/2008/2008-06/pro-systemic.html