The Financial Stability Report starts with the ever important conditions in the international environment, because they have a significant bearing on the conditions at home too. At the global level, 2018 was marked by an economic slowdown experienced in the second half of the year by advanced and, consequently, emerging economies.
Second key issue is that there is a need to put in place pre-determined methods of resolution, sources of funding and identified assets acceptable as collateral against such emergency funding in a crisis. Most importantly, authorities should have statutory or other policies in place so that authorities are not constrained to rely on public ownership or bail-out funds as a means of resolving firms.