Financial Stability Regulation
/ˈfaɪnæŋʃəl stəˈbɪləti ˌrɛɡjʊˈleɪʃən/
Definitions
- (n.) Legal frameworks and policies designed to maintain the resilience and soundness of the financial system, thereby preventing systemic crises.
Financial stability regulation aims to reduce the risk of bank failures that can trigger widespread economic disruption.
- (n.) Rules imposed on financial institutions to ensure their operations do not threaten overall economic stability.
The regulators tightened financial stability regulation following the 2008 crisis to improve oversight of systemic risks.
Forms
- financial stability regulation
Related terms
See also
Commentary
Financial stability regulation often encompasses both microprudential and macroprudential measures, aiming to contain risks at the institution and system-wide levels.
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.