Since the outbreak of the US subprime crisis in 2007, financial stability has become a pressing item in the agenda of governments and policy-makers worldwide. However, to date, there are no books that provide a comprehensive analysis of financial stability in all of its dimensions.  Understanding Financial Stability undertakes an in-depth analysis of all the concepts and issues related to financial stability. It establishes a general framework for a holistic assessment of financial stability, provides a comprehensive analysis pertaining to the genesis of financial crises, and offers key...

Sound financial stability assessments necessitate intensive analysis of different sectors, namely, the household sector, the corporate sector, the real estate sector, the government sector, and the non-bank financial sector.  This volume provides a complete analysis and risk assessment of each of these sectors which make up the subtle and intricate fabric which contribute to financial stability. The book considers:  • Micro-prudential and macro-prudential regulations and how they constitute core ingredients to ensure a sound and smooth functioning financial system.  • The role of...

The world is presently buffeted by many challenges, some of which manifest in new forms, such as Fintech and cryptocurrencies, while some challenges prevail out of the legacy trailed behind by the 2007 global financial crisis. Financial stability represents a highly complex and multi-dimensional concept. This being so, a sound and holistic financial stability assessment requires a focus not only on the distinct sectors which make up an economy but also on certain key economic areas.  Economic Areas Under Financial Stability examines several core areas which interact directly with financial...

Combatting financial stability risks is a highly challenging task which can by no means be concentrated into a ‘one-size fits all’ approach. It is important to select the appropriate tools and techniques in order to monitor, analyse, and maintain financial stability through proactive policy measures.  Tools and Techniques for Financial Stability Analysis explores all key aspects of analytical tools and challenges for sound financial stability assessments. Comprehensive coverage is given to value at risk, stress testing, graphical tools for financial stability, the financial system...

Many economies in the world are characterised by a bank-based financial system, that is, the financial intermediation process is mostly performed by banks. It is therefore critically important to undertake a fully-fledged analysis of the banking sector with respect to financial stability risks.  The Banking Sector Under Financial Stability considers the unique position of banks which by nature assume higher risks, but with a low equity to total assets ratio. It recognises that balance sheet analysis of banks becomes a key element in financial stability risk assessment and that the sources...