fail


Definition 1
In banking, it is the incapacity of a bank to honor its repayment commitments to other banks. In inter-bank fund transfer systems this inability can cause catastrophic cascading failure of several or all banks associated with the transaction.

Definition 2
In securities trading, it is the situation where on the settlement date either a seller is unable to deliver the contracted securities (called a short fail) or the buyer is unable to pay for them (called a long fail).

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