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Financial University under the Government of the Russian Federation. Assessing Financial Stability. Magister: Chernysh Julia. Definition.
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Financial University under the Government of the Russian Federation Assessing Financial Stability Magister: Chernysh Julia
Definition Financial system stability in a broad sense means both the avoidance of financial institutions failing in large numbers and the avoidance of serious disruptions. Assessing financial stability
Financial stability analysis is intended tohelpidentify threats to financial systemstabilityand to design appropriate policyresponses. Policy responses focuses: • exposures; • buffers; • economic, regulatory, and institutional determinants of financial soundness and stability. Assessing financial stability
The monitoring and analysis of financial stability involves: • assessment of macroeconomic conditions • soundness of financial institutions and markets • financial system supervision and the financial infrastructure Assessing financial stability
Overall Framework for Stability Analysis and Assessment Four key elements in financial stability analysis: 1Surveillance of financial markets early warning systems (EWSs) 2 Macroprudential surveillance tries conducting of stress tests monitoring of financial soundness indicators (FSIs) Assessing financial stability
balance of the various sectors in the economy 3 Analysis of macrofinancial linkages 4 Surveillance of macroeconomic conditions indicators of access to financing by the private sector Assessing financial stability