Economics A-Level
Insolvency
What Insolvency means in Economics A-Level, as defined for AQA.
Definitions of Insolvency
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Reference: AQA
A risk reduced by enforcing minimum capital and liquidity ratios, alongside the risk of bank runs, enhancing the overall stability of the financial system.
A situation where a bank's liabilities exceed its assets, often due to a high volume of non-performing loans.
Topics that use Insolvency
- The regulation of the financial system (AQA A-Level)
Related terms
- Bank run
- Capital ratio
- Consumer protection
- Financial stability
- Liquidity ratio
- Macro-prudential policy
- Macroprudential regulation
- Maturity transformation
Using Insolvency in the exam
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