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Financial Stability Policy

Definition

Financial stability policy refers to measures governments and central banks implement to maintain the overall health and resilience of the financial system. These policies aim to prevent systemic crises, ensure the smooth functioning of financial markets, and protect consumers and investors. In the context of digital assets, this involves assessing and mitigating potential risks that cryptocurrencies or blockchain technology could pose to the broader economy. It seeks to balance innovation with systemic safeguards.