English Reference
Noun

solvency

n. uncountable
C1 Advanced US /ˈsɔɫvənsi/ UK /sˈɒlvənsi/ sol·ven·cy UK spelling solvencies Finance

n.the ability of a person or company to pay their debts. If you have this, you have enough money to cover what you owe.

n.the state of being able to pay one's debts as they become due. Often used in legal and financial contexts to describe the health of a business or individual.


SIMPLE

The bank checked the company's solvency before approving the loan.

CONTEXTUAL

After the merger, the combined firm's solvency was questioned by several major investors who feared a cash crunch.

COMPLEX

The court ordered an independent audit to determine the solvency of the estate, as the executor had failed to provide a clear account of the remaining liquid assets.

The insurance sector has been struggling with eroding profitability owing to persistently low interest rates, with numerous small and mid-sized insurers reporting deteriorating solvency ratios, a measure of financial health.

The Guardian· 6 Sept 2026

From solvent + -cy.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

This entry
Level C1 · Advanced
Frequency Occasional
Updated