Construct · 2 fields · 2 citations

Where does soundness collide?

One name. Different field. Different construct. One map.

● jingle · one word, two constructs Nearest construct by meaningvaliditycompare the meanings
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Every construct on the map is compared with every other by the meaning of its definitions, and the closest one is surfaced here. The nearest construct to soundness is validity.

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soundness2 CONSTRUCTSLogical soundnessVAN DALEN · VALID PROOFBank soundnessDEMIRGUC-KUNT · SOLVENCY

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2008Bank soundness2013Logical soundness
2026

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Logic and formal systems

A valid argument with true premises

In logic, an argument is sound when it is valid, meaning its form guarantees the conclusion follows, and every one of its premises is in fact true, so the conclusion cannot be false. Applied to a whole proof system, soundness is the further property that the system proves only statements that are actually true, or valid, in every model, which makes it the mirror image of completeness, the property that every truth can be proved. Van Dalen's 2013 Logic and Structure presents the soundness and completeness theorems for predicate logic in this form. The referent is a formal guarantee about arguments and derivations, carried by truth and validity alone, and it has nothing to do with a bank surviving losses or a building bearing its load.[1]

Unit
One argument or proof system judged sound or unsound
Recovery means
Not applicable
Measured by
Established by proof: showing each inference rule preserves truth, so anything derivable is true in every model

Finance and banking

A bank able to withstand losses

In banking, soundness is the financial health of a bank or of the banking system: its ability to absorb losses, stay solvent, and keep meeting its obligations to depositors and creditors even under stress. Regulators pursue it through capital adequacy rules and supervision, the field often labelled safety and soundness. Demirguc-Kunt, Detragiache, and Tressel's 2008 study Banking on the principles measured bank soundness against the Basel Core Principles for supervision, treating it as a graded condition of an institution rather than a yes or no fact. The referent is the loss-absorbing strength of a financial institution, tracked by capital and solvency ratios, not a guarantee about an argument or the integrity of a physical structure.[2]

Unit
One bank or banking system, rated by its capacity to absorb losses
Recovery means
Rebuilt by raising capital, cutting risk, or supervisory intervention after losses erode buffers
Measured by
Gauged by capital adequacy and solvency ratios, distance-to-default scores, and supervisory ratings

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Nearby collisions

validity6 fields · 10 citationsjingle · one name, six constructsintegrity5 fields · 14 citationsjingle · one word, five constructsstability4 fields · 5 citationsjingle · one word, four constructs

References

  1. van Dalen, D. (2013). Logic and structure (5th ed.). Springer. https://doi.org/10.1007/978-1-4471-4558-5
  2. Demirguc-Kunt, A., Detragiache, E., & Tressel, T. (2008). Banking on the principles: Compliance with Basel Core Principles and bank soundness. Journal of Financial Intermediation, 17(4), 511-542. https://doi.org/10.1016/j.jfi.2007.10.003

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