means The state of having enough assets and income to pay all your debts and obligations as they come due.

from From Latin 'solvere,' to loosen, release, or untie — the same verb that gives us 'solve' and 'dissolve.' A debt was imagined as a binding knot, and to pay it was literally to 'unbind' yourself from the obligation. 'Solvency' arrived in English in the 17th century as the financial flavor of that loosening: the happy condition of being free to slip the knot whenever it pulls tight.