In the sense of liquidity, the ability of a debtor to meet its obligations on time at all times (the ability of a debtor to pay its liabilities when due), synonymous with liquidity. – The debts of a company shown as a percentage of its equity plus loan capital. – The relationship between the amount of loan and preference share capital on the one hand, and the nominal amount of ordinary capital on the other. – In the case of an institution, the obligation (pursuant to § 10 of the German Banking Act) to maintain adequate equity capital to meet its liabilities to customers. In detail, Basel II requires precise specifications for the individual risks. – As an underwriting term, in life insurance the ratio of available equity to the provision for future policy benefits. – See Basel-III, financial strength, core capital, liquidity, forms of liquidity, liquidity risk, risk, risk and solvency assessment, proprietary, solvency regulation, solvency, solvency risk, common stock. – See BaFin Annual Report 2006, p. 125 f. (course of solvency; overview), BaFin Annual Report 2007, p. 90 f. (satisfactory coverage ratio of insurers and reinsurers), p. 127 f. (reporting requirements since the beginning of 2008), ECB Monthly Report of August 2013, p. 102 ff. (on solvency analysis at banks, textbook presentation; many overviews and literature references).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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