Financial Stability Council
The Financial Stability Council is a formal co-operation forum of public authorities for financial stability. The Council serves as venue for consultation, exchange of information and policy formulation with the aim to strengthen and preserve financial stability in the public interest, limit the build-up of systemic risk and co-ordinate the preparedness of public authorities for financial crises. Members of the Financial Stability Council are the Minister of Finance and Economic Affairs and the Governor of the Central Bank. The Minister is the Chairman of the Council.
The principal tasks of the Financial Stability Council are the following:
- to formulate official policy on financial stability;
- to monitor economic imbalances, financial system risks, undesirable incentives and other conditions that are likely to jeopardise financial stability;
- to assess the effectiveness of macroprudential policy tools
Apart from its regular meetings, the Financial Stability Council shall convene as an official forum for consultation when a financial crisis is deemed imminent or has struck, or when there is the risk of events that could cause significant contagion or losses in financial markets. The Council assesses which necessary actions or measures must be taken and coordinates the authorities’ involvement.