What is financial stability
Answer (1)
Financial stability is a cornerstone of a healthy and prosperous economy. It ensures the smooth functioning of financial markets and institutions, allowing businesses to invest, households to access credit, and the economy to grow sustainably. Maintaining financial stability requires a comprehensive approach that addresses both individual and systemic risks, promoting resilience, efficient resource allocation, and confidence in the financial system. By fostering a stable financial environment, we can create a foundation for long-term economic growth and prosperity.
