This loan will further consolidate the bank's own funds, strengthen its solvency ratios
and cash flow and allow it to boost the economy.
But downside risks for the sector have increased, and from 2016 banks will also have to meet additional Basel III capital buffers that will underpin quite healthy solvency ratios
Liquidity ratios analyze the company's capacity to pay off its short-term debt obligations, whereas solvency ratios
examine the company's ability to meet its long-term liabilities.
Although the Solvency II regime has yet to be finalised, Moody's Investor Service has outlined its expectation that solvency ratios
will ultimately exhibit a more complex volatility under Solvency II than under Solvency I, as both the available capital and the capital requirements of the solvency ratio
will change with market conditions.
They argued that "the risk covered by pension funds is a long-term risk and there is consequently no need to impose solvency ratios
adopted for short-term risks, like those covered by insurance".
He described Bahrain's banks' performance as "outstanding" compared to other Arab banks, thanks to abundance of cash liquidity and high financial solvency ratios
, reports our sister paper Akhbar Al Khaleej.
It further added that even though capital reserves were at 200 percent of the required minimum, firms' solvency ratios
have started to decrease slightly.
The sale was conducted through a secondary offering and is part of Santander's measures to bring its solvency ratios
in line with tougher capital standards.
The new standards give more weight to possible appraisal losses on major insurers' stockholdings, which is expected to lower their solvency ratios
40-50 percent on average.
Relatively strong market returns and a slight upward move in interest rates contributed to an increase in average funding and solvency ratios
for corporate and public pension funds last year, and drove endowment assets' growth rate to 7.
UK life insurance companies have suffered a torrid 12 months as volatile stock markets slash the value of investment funds and hammer solvency ratios
As a result, solvency ratios
would be vulnerable to falls in stock prices because unrealized losses on unlisted domestic stocks and foreign stocks would be taken into account.