failing or likely to fail (FOLTF)

What is failing or likely to fail (FOLTF)?

failing or likely to fail (FOLTF) definition and meaning on Finance terms:
There are four reasons why a bank can be declared failing or likely to fail: (i) it no longer fulfils the requirements for authorisation by the supervisor; (ii) it has more liabilities than assets; (iii) it is unable to pay its debts as they fall due; (iv) it requires extraordinary financial public support. At the time of declaring a bank failing or likely to fail, one of the above conditions must be met or be likely to be met. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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