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After insolvency together with significance of deposit insurance coverage

After insolvency together with significance of deposit insurance coverage

For the bank, being insolvent means it cannot repay its depositors, because its liabilities are higher than its assets. The end result that a bank has if it becomes insolvent is dependent upon the option of deposit insurance coverage.

In a nation without deposit insurance coverage an insolvent bank would not be in a position to repay individuals deposits in complete. Continue reading After insolvency together with significance of deposit insurance coverage