solvency
Ability to pay
Solvency is the ability to meet financial obligations—having assets sufficient to cover debts.
A company demonstrates solvency when its assets exceed its liabilities; an individual shows solvency by paying bills on time.
The bank's solvency was never in question.
Solvency is the opposite of insolvency or bankruptcy.
Convertibility to cash
- creditworthinessAbility to repay debts
- financial stabilitySound economic standing
- balance sheetAssets-liabilities-equity report
- assetsOwned items of value
liabilities · equity · capitalization · profitability · debt-to-equity · cash flow · working capital · surplus
Ready spending funds
- working capitalAssets minus current liabilities
- cash flowMoney entering and exiting
- accounts receivableDebts owed to business
- convertibilityCapacity for free exchange
funds · liquid assets · current assets · acid test · float · treasury
Preset standard option
- liquidationSelling assets for cash
- restructuringRearranging an existing framework
- receivershipCourt-ordered asset management
- administrationOrganizational oversight and control
creditors · debtor · bankrupt · petition · foreclosure · bailout · winding up · debt relief
Minimum funds banks must hold
- stress testEvaluating performance under strain
- BaselSwiss Rhine city
- prudentialRelating to wise discretion
- oversightSupervision or inadvertent omission
margin of safety · adequacy · supervisory · banking regulations
liquidity
Convertibility to cash
- creditworthinessAbility to repay debts
- financial stabilitySound economic standing
- balance sheetAssets-liabilities-equity report
assets · liabilities · equity · capitalization · profitability · debt-to-equity · cash flow · working capital · surplus · reserves
cash
Ready spending funds
- working capitalAssets minus current liabilities
- cash flowMoney entering and exiting
- accounts receivableDebts owed to business
convertibility · funds · liquid assets · current assets · acid test · float · treasury
default
Preset standard option
- liquidationSelling assets for cash
- restructuringRearranging an existing framework
- receivershipCourt-ordered asset management
administration · creditors · debtor · bankrupt · petition · foreclosure · bailout · winding up · debt relief · turnaround
capital requirements
Minimum funds banks must hold
- stress testEvaluating performance under strain
- BaselSwiss Rhine city
- prudentialRelating to wise discretion
oversight · margin of safety · adequacy · supervisory · banking regulations
- financesmoney, affluence, cash, bankrupt, income
- business financeaccounting, balance sheet, revenue stream, profit margin, budget
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- financebank, CFO, banks, controller, finance
- financial termswealth, asset, currency, balance sheet, audit
- financial meansincome, money, earnings, salary, wages
solvencyinsolvency
Inability to pay debts
bankruptcy · financial ruin · financial collapse · indebtedness · illiquidity
- universal solventDissolves any substance
- chlorinated solventsHalogenated organic degreasers
- solvent fumesGases from dissolving liquids
- chemical solventLiquid that dissolves solutes
- organic solventsCarbon-compound liquids for dissolving
- financial solvencyAbility to pay debts