For us in India, it means: (a) ensuring uninterrupted financial transactions; (b) maintenance of a level of confidence in the financial system amongst all the participants and stakeholders; and (c) absence of excess volatility that unduly and adversely affects real economic activity. Such financial stability has to be particularly ensured when the financial system is undergoing structural changes to promote efficiency.
The structural changes relate to ownership, regulation and competition, both, domestic as well as external competition. Integration of financial markets is another dimension of the process: the integration of domestic financial markets is one aspect while global financial integration is another though a related aspect.