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You searched for: Content Type Journal Article Remove constraint Content Type: Journal Article Political Geography United Kingdom Remove constraint Political Geography: United Kingdom Publication Year within 10 Years Remove constraint Publication Year: within 10 Years Publication Year within 5 Years Remove constraint Publication Year: within 5 Years Journal The Cato Journal Remove constraint Journal: The Cato Journal Topic Civil War Remove constraint Topic: Civil War
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  • Author: Joshua R. Hendrickson
  • Publication Date: 03-2014
  • Content Type: Journal Article
  • Journal: The Cato Journal
  • Institution: The Cato Institute
  • Abstract: A bank is considered insolvent when its liabilities (deposits) exceed the value of its assets (reserves, loans, and securities). If assets exceed liabilities, any losses experienced on the asset side of the bank balance sheet result in a corresponding loss in the bank's capital. Insolvency occurs only in the event of losses exceeding the value of capital. All else equal, a bank with more capital is at lower risk of insolvency because the value of the bank's capital fluctuates with the value of assets.
  • Topic: Civil War
  • Political Geography: United Kingdom