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Assessing Financial Stability: Exploring the Boundaries of Analysis

Published online by Cambridge University Press:  26 March 2020

John Fell  and
Garry Schinasi
John Fell*
Affiliation:
European Central Bank
Garry Schinasi*
Affiliation:
International Monetary Fund
*
e-mail: john.fell@ecb.int
e-mail: gschinasi@imf.org
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Abstract

Within the context of a practical framework for safeguarding financial stability — entailing both prevention and resolution — this paper discusses the practical boundaries and challenges of assessing financial stability. The paper characterises the financial stability challenge, discusses concepts and definitions essential for safeguarding stability, and puts forward a practical process (but not a blueprint) for assessments. The paper proposes guidelines for disciplining an assessment process, examines measurement and modelling ambiguities, and identifies areas where significant further progress is necessary.

Keywords

Financial stabilityrisks and vulnerabilitiesE60G00
Type
Articles
Information
National Institute Economic Review , Volume 192 , April 2005 , pp. 102 - 117
Copyright
Copyright © 2005 National Institute of Economic and Social Research

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Footnotes

The views expressed in the paper are those of the authors and do not necessarily reflect those of the IMF or IMF policy or the ECB.

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