CAPITAL
Rainy-day cash held in reserve to protect against future unexpected losses
FUNDING
Everyday cash to meet immediate repayments (on deposits, bills and debts) on an ongoing basis
SOLVENCY
The ability to repay all debts
LIQUIDITY
The ability to meet debts day-to-day
P-CAR
The prudential capital assessment review: the Central Bank’s capital test to ensure the banks have enough in reserve to cover worst case losses
P-LAR
The prudential liquidity assessment review: the Central Bank’s liquidity test to ensure the banks can reduce in size to meet their repayments on their own
