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Financial Stability

Financial stability is the state of a financial system when it is capable to perform duly its core functions such as financial intermediation and execution if payments as well as to resist crises. Financial system is presumed to be stable if it

 

1) efficiently distributes resources from savers to investors;

2) thoroughly assesses and adequately manages financial risks;

3) is capable to absorb shocks without major negative consequences.

 

Ensuring financial stability became one of the key tasks for central banks around the world in the course of the last decade. The Law of Ukraine “On National Bank of Ukraine” also sets promotion of financial stability as one of the core functions of the National Bank. The National Bank of Ukraine builds up its financial stability framework with regard to rich international experience.

 

The National Bank partially shares its responsibility for financial stability support with the Ministry of Finance, National Securities and Stock Market Commission, National Commission for the State Regulation of Financial Services Markets, Deposit Guarantee Fund. The Decree of the President of Ukraine established high-level interagency Financial Stability Council in the March 2015. The Council comprises heads of key financial sector regulators.

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