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حسابداری و مالی::
اعسار
The following hangover on the public debt market then threaten the solvency of entire Countries and, at some point, even the disappearance of the European monetary union, as the risks of insolvency moved from the private to the public sector, because of the expensive "bail-outs" operated by few governments and the fundamental roles healthy banks play for the placement and negotiation of public debt bonds.
In fact, any robust "bank run" will lead inevitably to the illiquidity and then insolvency of a bank-no matter how well capitalized and profitable this is, because of the inherently unavoidably high equity multiplier used in the banking industry (the bank lends on the basis of a multiple of its equity-be it 5 or 50 is relevant up to a point, as even in the first case a robust bank run will show that the equity is not enough to refinance to maturity the longer term dated loan portfolio).
• As the credit supply dries up, the illiquidity and then insolvency rate of cor- porate (mostly) and retail clients increase, as they are unable to refinance their balance sheet and are forced to further "fire sales", at deeper and deeper dis- counts.
Even worst, the scale of the debt and equity (usually sub or non performing-sometimes referred as "toxic assets") transferred to the governments is just so large that a public debt crisis is then ignited, with looming interest rates required to serve the outstanding public debt issues and the spread between the better and worst positioned Countries widening at an accelerated pace, potentially leading to the insolvency of one or more Countries and to a number of "bail-outs" financed by international Institutions, often acting in conjunction, such as the IMF, the World Bank and the EU/ECB as in the case of Greece in 2013-2014
;As explained, the simple rumor of a bank being bust (just because credible and believed by customers, even if totally not true) could bring a bank to a liquidity crisis, then to fire sales and then to insolvency as a self-fulfilling prophecy
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واژگان شبکه مترجمین ایران
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اقتصاد::
ورشکستگی
The Z-score or its log is used commonly to measure banks' financial soundness or insolvency (Roy, 1952; Boyd et al. 2006; Lepetit et al. 2008; Lepetit and Strobel, 2013; Delis et al.
The lower the bank's Z-score the higher its risk of insolvency.
The underlying idea of the Z-score is that since bank is supposed to become insolvent when its current losses exhaust capital, car + roa≤0, we can easily estimate the likelihood of insolvency by assuming that this likelihood refers to the probability that roa≤-car (or car < π), with car the bank's capital to asset ratio, roa its return on asset ratio (Lepetit and Strobel, 2015), and π its losses.
The underlying idea of the Z-score is that since the bank is supposed to become insolvent when its current losses exhaust capital, Car + ROA ≤0, we can estimate the likelihood of insolvency by assuming that this likelihood refers to the probability that ROA ≤-Car (or Car < n), with Car the bank's equity to asset ratio, ROA its return on asset ratio (Lepetit and Strobel, 2015), and π is the bank's losses.
The Z-score or its log is used widely to measure bank financial soundness or bank insolvency (Roy, 1952; Boyd et al. 2006; Lepetit et
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