Financial stability

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

Financial stability is the desirable quality of a well-functioning economy in which there is a high level of public confidence in financial institutions, financial markets and financial market infrastructure.

For example in the UK, the Bank of England's role in maintaining financial stability includes:

  • Maintaining confidence in sterling.
  • In times of market stress, acting as a lender of last resort and a market maker of last resort.
  • Regulating and supervising individual banks and other financial institutions to promote their safety and soundness, through the Prudential Regulation Authority.
  • Addressing systemic risks, through the Financial Policy Committee.
  • Supervising financial market infrastructure.
  • Resolving failing financial institutions in an orderly way.
  • Collaborating with other UK financial authorities to support UK financial sector business continuity and operational resilience.

See also

External link