What is the meaning of solvency?

solvency is the condition of having sufficient funds to cover losses. In the short term, solvency is a manifestation of liquidity. Fundamentally, however, solvency is a function of capital adequacy. See: insolvency.

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APABarry Goldsmith. (2010). solvency. Retrieved September 21, 2026, from http://smartdefine.org/solvency/definitions/1163786
ChicagoBarry Goldsmith. 2010. "solvency" http://smartdefine.org/solvency/definitions/1163786 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, solvency, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/solvency/definitions/1163786>.
MLABarry Goldsmith. "solvency" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/solvency/definitions/1163786>
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