How Reserve Bank of Australia maintain the financial stability?

1 ANSWERS

1. Guest3454
   

   In fulfilling its mandate to promote financial system stability, the Reserve Bank has a role both in mitigating the risk of financial disturbances with potentially systemic consequences, and in responding in the event that a financial system disturbance does occur.
   There are several ways in which the Reserve Bank aims to reduce the likelihood of financial instability. One is by laying the foundation for low and stable inflation and sustainable economic growth, an environment that will generally be conducive to financial stability.
   Associated with this is the role that the Reserve Bank plays in monitoring the health of the financial system. On an ongoing basis, the Bank assesses a range of aggregate financial and economic data that help gauge the soundness of the financial system and potential vulnerabilities. The results of such analysis are published half-yearly in the Financial Stability Review.

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