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The study aims to define financial stability and its multifaceted role in economic policies.

February 6, 2026Open Access

Financial System & Its Financial Stability

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The study aims to define financial stability and its multifaceted role in economic policies.
Analyzed scholarly literature on financial stability
Examined the definition of financial stability by leading scholars
Summarized mechanisms of financial risk management
Financial stability involves effective resource allocation over time.
It requires the ability to identify and manage financial risks.
The system must absorb unexpected financial events without disruption.

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Financial system stability demonstrates key economic roles, suggesting implications for monetary authorities worldwide.

Flutura Gagica Rexhepi (2024) studied this question.

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