Financial market stability

Financial market stability refers to a state where markets operate smoothly, without excessive volatility or disruptions, allowing investors, businesses, and consumers to function confidently. It ensures that financial institutions and markets are resilient to shocks, preventing crises like bank failures or market crashes. Stable markets support economic growth by providing reliable access to funding and fair pricing of assets. In essence, stability fosters trust in the financial system, reducing the likelihood of sudden, severe problems that can harm the broader economy.