Solvency refers to a companys ability to meet its long-term debts and financial obligations. It is a measure of a companys financial health and its capacity to maintain more assets than liabilities. Solvency is important for owners, investors, and creditors because it indicates how financially sustainable a companys operations are in the long run.

Banks also have solvency, which is the ability of a bank to meet its long-term debts and financial obligations. The bank capital to risk-weighted assets is a measure of bank solvency and resiliency, which shows the extent to which banks are able to meet their obligations. Banks face both liquidity risks and solvency risks if their assets are riskier and less liquid than their liabilities.

In summary, bank solvency refers to a banks ability to meet its long-term debts and financial obligations, while company solvency refers to a companys ability to meet its long-term debts and financial obligations.