What are the key differences between a solvency crisis and a liquidity crisis in commercial banks?

A solvency crisis is characterized by a lack of cash reserves to cover immediate obligations, while a liquidity crisis concerns the long$-$term ability of a bank to remain profitable and solvent.

A solvency crisis questions the bank's long$-$term financial stability, while a liquidity crisis is characterized by a lack of cash reserves to cover immediate obligations.

Solvency and liquidity crises are two interchangeable terms, referring to the same financial problems faced by banks, and there are no significant differences between them.

A solvency crisis arises when a bank cannot meet its short$-$term financial obligations, whereas a liquidity crisis occurs when a bank's long$-$term financial stability is in question.