I will use the definition of the Bank of Canada, “…when households, businesses and financial-service firms can reliably hold and transfer financial assets, without a meaningful risk of disturbances that would undermine financial exchange fundamentally and lead to macroeconomic costs”.
The SARB’s mandate of price stability has been expanded with an explicit responsibility to oversee and maintain the stability of the South African financial system. While the price stability mandate of the Bank is narrowly defined and measureable, its mandate for financial stability is much broader and is a shared responsibility with other stakeholders in the financial and public sectors.