Forbid taking krone raised by head of trust that's insolvent (8)
I believe the answer is:
bankrupt
'insolvent' is the definition.
('bankrupt' can be similar in meaning to 'insolvent')
'forbid taking krone raised by head of trust' is the wordplay.
'forbid' becomes 'ban' (banning is a kind of forbiding).
'taking krone' becomes 'kr' (abbreviation for the currency. I am not sure about the 'taking' bit.**).
'raised' becomes 'up' ('up' can be similar in meaning to 'raised').
'by' is a charade indicator (letters next to each other).
'head of' indicates taking the first letters.
The initial letter of 'trust' is 't'.
'ban'+'kr'+'up'+'t'='BANKRUPT'
'that's' is the link.
(Other definitions for bankrupt that I've seen before include "Broke" , "Skint" , "Gone bust in business" , "Failed" , "Financially ruined" .)