Financial Stability Framework

A Financial Stability Framework is a system of rules and practices designed to keep the financial sector (banks, markets, and other financial institutions) stable and resilient. Its goal is to prevent financial crises, such as bank failures or market collapses, which can harm the economy and people's savings. It involves monitoring risks, setting regulations, and coordinating responses among regulators and institutions. By doing so, it helps ensure that the financial system functions smoothly, supports economic growth, and protects consumers and investors.