Financial Stability
/ˈfaɪnænʃəl stəˈbɪlɪti/
Definitions
- (n.) The condition in which the financial system, including institutions, markets, and infrastructure, operates efficiently and resiliently, ensuring the allocation of resources, management of risks, and stability of the economy.
Regulators aim to maintain financial stability to prevent systemic crises.
- (n.) A legal and regulatory objective to prevent insolvencies and failures within financial entities that could jeopardize the broader economic system.
Financial stability is a central goal in the design of banking supervision laws.
Forms
- financial stability
Related terms
See also
Commentary
In legal contexts, financial stability often underpins regulatory frameworks aimed at preventing systemic collapse; clarity in defining its scope is crucial in drafting statutes and guidelines.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.