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Regulators, Clients, and Internal Financial Managers are all interested in the solvency of commercial banks. How do these various groups measure commercial bank solvency? Are

Regulators, Clients, and Internal Financial Managers are all interested in the solvency of commercial banks. How do these various groups measure commercial bank solvency? Are there any particular measures or performance indicators that are helpful in measuring commercial bank solvency? Should banks aim to meet particular levels or benchmarks, either set by the government or demonstrated by their peer institutions? Are some benchmarks more important than others? What should be the main priority for internal financial managers at banks regarding capital adequacy compliance?

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