(OCC45) Effective Financial System Stability Framework by Wimboh Santoso and Sukarela Batunanggar

This paper analyses the concept of financial system stability and how it is practiced as one of the key objectives of a central bank. The paper discusses five main topics related to financial system stability: (i) what is financial system stability and why it is important; (ii) central bank function in maintaining financial system stability; (iii) promoting financial system stability in practice. This topic elaborates research and surveillance activities on the financial system covering financial institutions and markets financial infrastructure domestic finance and international finance; (iv) coordination and cooperation in maintaining financial stability; (v) financial safety nets and crisis management. The paper concludes by posing several key challenges faced by related authorities in creating and maintaning financial system stability.

Author(s): Wimboh Santoso and Sukarela Batunanggar

Pages: 46

Published Date: 1 January 2007

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