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| Financial Stability |
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| About Financial Stability: |
Financial stability reflects the state in which the financial system-financial intermediaries, financial markets and financial market infrastructure-aids in smooth flow of funds between savers and investors in a structured and trustful manner. Given the importance of financial stability for the well functioning economy, ensuring stability of the financial system has emerged as one of the key responsibility of the central banks and regulatory authorities across the world.
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| Structure of Financial System: |
Financial sector of Pakistan constitute banks, Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Non-banking Finance Companies (NBFCs), insurance companies, Modarabas and other financial intermediaries.
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| Financial Stability Executive Committee: |
Financial Stability Executive Committee (FSEC), an internal committee within SBP, is a forum for discussing and monitoring financial stability issues, taking decisions to remove systemic risks and facilitating coordination among various departments to protect and enhance the resilience of the banking system.
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| Financial Stability Assessment: |
A key element of financial stability framework is periodic assessment, systemic risk monitoring and availability of contingency planning & resolution framework.
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