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
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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