Skip Ribbon Commands
Skip to main content

Main page




Visitor Centre
Legislation and Policy Database


How to use SOAP functions to get information about CBA rates Function description

FINANCIAL STABILITY

Introduction

 
The Central Bank of Armenia defines financial stability, which is the main goal in addition to price stability, as a condition where financial system is able to withstand shocks and disruptions so that the system maintains a sufficient level of liquidity, adequately performs transactions and transmissions and facilitates allocation of savings to investment opportunities in the economy.
 
In its most common definition, financial stability means the stability of key financial institutions and financial markets, and does not in any way rule out bankruptcy on the part of individual financial institution as well as severe fluctuations in asset values.
Financial stability implies identification of sources of major risks, imprudent financial risk management, not efficient pricing of assets and implementation of appropriate polices.
A stable financial system is a key ingredient for a healthy and successful economy. Every one needs to have confidence that the system is safe and stable, and functions are proper to provide vital services to the economy.
               
Safeguarding and maintaining the stability of financial system is of primary importance to central banks of most countries. This is because low inflation and unemployment and fast economic growth, as common objectives of monetary and other state authorities, cannot be achieved in the modern economy without a developed and stable financial system through which the effects of monetary policy measures can be effectively channeled to other economic sectors.
 
Maintaining Financial Stability as an Objective of Central Bank
 
Instruments used by Central Bank to maintain financial stability
 
Central Bank policies addressed to maintaining financial stability
 
Financial stability committee
 
 
 
 
 
 
 
 
Previous

Electronic Government of the Republic of Armenia

Financial System Mediator

Armenian Deposit Guarantee Fund

Armenian Card

Armenian Motorinsurers’ Bureau

National Mortgage Company

ACRA Credit Reporting

German-Armenian Fund

Home for youth

Next