The phrase "a solvent bank" is correct and usable in written English.
It can be used to describe a bank that is financially stable and able to meet its obligations.
Example: "In times of economic uncertainty, customers tend to prefer a solvent bank to ensure their deposits are safe."
Alternatives: "a financially stable bank" or "a sound bank".
New Landsbanki is a solvent bank servicing Icelandic customers.
But even a solvent bank can be broken by a bank run.
The deal announced on Wednesday is an effort to break that logjam, but it does not involve a solvent bank selling its assets and might not offer enough taxpayer-financed sweeteners to bridge the gap between the prices banks want and the prices investors will pay.
The bank's governor, Mervyn King, said the scheme was designed to end once and for all the worry that a solvent bank might go under because it could not gain access to emergency lending.At the very least, that should help reduce the illiquidity risk in the interbank spread and go some way to soothing solvency fears.
The decline in CDS premia, he says, may reflect the commitments made by central banks, led by the Federal Reserve, to ensure that a solvent bank will not fail for the want of enough cash to meet its immediate needs.That effort was bolstered on April 21st when the Bank of England unveiled its own ambitious plan to tackle the problem: the Special Liquidity Scheme.
Deutsche Bank is by no means the only European bank on a knife edge, and the Bank of Portugal's recent decision to use the BRRD to justify wiping some senior creditors in a solvent bank has fatally undermined the BRRD.
Now a solvent banking system is beginning to accommodate a rising demand for credit.
When private funding dries up, they will lend without limit to any solvent bank willing to pay a penalty rate.
Under FDR's Emergency Banking Act, the federal government agreed to meet the liabilities for any solvent bank.
This process of hasty liquidation can cause even a previously solvent bank to fail.
Action was needed, and would be taken, to protect all solvent banks in the EU.
