Differentiate between a solvent bank and an insolvent bank. Which of the two is likely to have a greater stockholders' equity?

What will be an ideal response?

A bank is solvent when the value of the bank's assets is greater than the value of its liabilities. A bank becomes insolvent when the value of the bank's assets is less than the value of its liabilities.
Since stockholders' equity is defined as total assets of a bank less the total liabilities, a solvent bank is likely to have a greater stockholders' equity than an insolvent bank.