For a bank, being insolvent means it cannot repay its depositors, because its liabilities are more than its assets. The consequence that the bank has if it becomes insolvent is determined by the accessibility to deposit insurance coverage.

An insolvent bank would not be able to repay people deposits in full in a country without deposit insurance. In the eventuality of an insolvency depositors will have to queue up along with other bank creditors to reclaim whatever cash they might through the bank.