Acronyms that contain the term financial stability 

Financial stability

Financial stability is a property of a financial system that dissipates financial imbalances that arise endogenously in the financial markets or as a result of significant adverse and unforeseeable events. When stable, the system absorbs economic shocks primarily via self-corrective mechanisms, preventing the adverse events from disrupting the real economy or spreading over to other financial systems. Financial stability is paramount for economic growth, as most transactions in the real economy are made through the financial system. Without financial stability, banks are more reluctant to finance profitable projects, asset prices may deviate significantly from their intrinsic values, and the payment settlement schedule diverges from the norm. Hence, financial stability is essential for maintaining confidence in the economy. Possible consequences of excessive instability include financial crisis, bank runs, hyperinflation, and stock market crashes.

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