Solvency (Noun)
Meaning
The ability to meet maturing obligations as they come due.
Classification
Nouns denoting natural processes.
Examples
- The company's solvency was in question after a series of poor financial reports and declining sales.
- To assess the bank's financial health, regulators closely examined its solvency and liquidity.
- The insurance company's solvency ratio was well above the regulatory minimum, indicating a strong ability to pay claims.
- A decline in asset values raised concerns about the pension fund's solvency and its ability to meet future obligations.
- The government's solvency was called into question after a series of costly bailouts and stimulus packages.