sol·​ven·​cy | \ ˈsäl-vən(t)-sē How to pronounce solvency (audio) , ˈsȯl- \

Definition of solvency

: the quality or state of being solvent

Examples of solvency in a Sentence

They reviewed financial records to measure the borrower's solvency.
Recent Examples on the Web As the yields on those bonds rise, the value of the bonds falls, potentially crimping the banks’ ability to lend to the economy—or worse, threatening their solvency. Tom Fairless, WSJ, 10 June 2022 There are countless ways these risks could reduce the solvency of debtors and create pathways to the kinds of default waves that threaten bank soundness, directly implicating the Fed’s supervisory responsibilities. Aaron Regunberg, The New Republic, 19 May 2022 This allowed the airline to absorb most of the half billion in further losses that accrued in 2021 without unduly straining its solvency. Christiaan Hetzner, Fortune, 5 May 2022 The government's retirement and health care programs are already straining financially and are expected to face serious solvency issues; the Medicare Part A Trust Fund is due to be insolvent in 2026 and the Social Security Trust Fund in the 2030s. Next Avenue, Forbes, 28 Jan. 2022 By extending Medicare’s solvency on paper, the law’s accounting gimmickry allowed lawmakers in both parties to avoid any substantive discussion of reform for a dozen years. Chris Jacobs, WSJ, 15 May 2022 But the new law alone won't bring solvency to the agency, which has suffered 14 straight years of net losses. Mike Snider, USA TODAY, 14 May 2022 Which means, unless Congress and the president get serious about dealing with these two solvency problems, retirement could be an increasing challenge, too. Next Avenue, Forbes, 6 May 2022 The program’s long-term solvency, however, is in doubt and the cost to workers who buy into the program is in question. Michelle Andrews, oregonlive, 19 Apr. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'solvency.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of solvency

circa 1727, in the meaning defined above

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The first known use of solvency was circa 1727

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Last Updated

15 Jun 2022

Cite this Entry

“Solvency.” Dictionary, Merriam-Webster, Accessed 3 Jul. 2022.

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More Definitions for solvency


sol·​ven·​cy | \ ˈsäl-vən-sē How to pronounce solvency (audio) \

Legal Definition of solvency

: the quality or state of being solvent

More from Merriam-Webster on solvency

Nglish: Translation of solvency for Spanish Speakers

Britannica English: Translation of solvency for Arabic Speakers


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