This encompasses monitoring the behaviour of all important players in the financial sector, the health of non-financial sector balance sheets as well as assessment of systemic vulnerabilities. This analysis is accompanied by communication policy on financial stability issues, either through dedicated financial stability reports or disclosure of information on financial stability as part of regular reports (Annex 1).
The basic motive behind such reports is to communicate to the markets and the public at large and thereby express the commitment of the central bank for achieving its objectives. This is accompanied by a process of structured communication among the various bodies involved in the pursuit of financial stability.