Centre d'Etudes Doctorales : Droit & Economie, Equipe de Recherche en Finance, Politique Economique et Compétitivité de l'Entreprise, Faculté des Sciences Juridiques, Economiques et Sociales - Souissi, Université Mohammed V - Rabat, Morocco
Despite the fact that there is no consensual definition to the concept of financial stability, it turns out that all economists agree on the characterization of the financial instability. Thus, this latter is assumed to be linked to the phenomena of financial crises and systemic risk. These determine not only the disadvantages related to the social welfare of a situation where a climate of distrust and uncertainty is at its peak, but also the aspects and characteristics of a vulnerable and unbalanced system. This article will focus, first, on the definition of the concept of instability with a view to identifying the sources of vulnerability of a banking system. Thereafter, we will examine the elements that must be taken into account in defining the financial stability, on the basis of which will be based the types of measures to be undertaken by the authorities to ensure this financial stability. Finally, we will discuss the importance of regulation and supervision to the stability of the financial sector through both micro and macro dimensions of the banking regulation.
Show abstract
Full Text
