Bank Insolvency
/ˈbæŋk ɪnˈsɒlvənsi/
Definitions
- (n.) The state of a bank being unable to meet its financial obligations as they come due, often leading to regulatory intervention, liquidation, or restructuring.
The government stepped in to manage the bank insolvency to protect depositors.
Forms
- bank insolvency
Related terms
See also
Commentary
Bank insolvency specifically concerns a banking institution's financial incapacity, distinguished from general corporate insolvency, often triggering regulatory mechanisms unique to the banking sector.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.