Financial system remains stable, with the risks being at a moderate level, as concluded in the 2024 Annual Report, which was adopted by the Financial Stability Committee at its latest session.
This Annual Report highlights that the domestic financial system exhibits high resilience to shocks, while successfully addressing the ongoing challenges. In 2024, the financial institutions operated in a more conducive macroeconomic environment, achieving solid performance, and contributing to expanded financial intermediation.
The risks to financial stability arising from various segments of the financial system are moderate, as is the risk of “contagion”, or spillover of risks from one segment to another. However, there remain few prevailing uncertainties, mostly related to external factors such as geopolitical tensions and economic fragmentation. As a small and open economy, our domestic system is still susceptible to external shocks, thus entailing continuous caution.
Against this backdrop, financial institutions and macroprudential policy makers should attentively monitor the developments for the purpose of maintaining a financial stability. Financial regulatory institutions will continue to coordinate the monitoring of developments, exchange information in a timely manner, and, if necessary, take appropriate actions within the scope of their competences. They have a sufficient set of instruments at their disposal to preserve financial stability, ensuring its maintenance in the period ahead.
Financial Stability Committee is an inter-institutional body responsible for monitoring the implementation of macro prudential policy, as well as coordinated monitoring of the systemic risks and the financial crises. comprising representatives from all financial regulatory institutions: Governor of the National Bank, Minister of Finance, President of the Insurance Supervision Agency, Agency for Supervision of Fully Funded Pension Insurance and Securities and Exchange Commission, five representatives from the National Bank, as well as three Ministry of Finance’s representatives.
