Indeed, in some jurisdictions investment banks, the key institutions in this securitization boom fell outside the prudential purview of key financial regulators Measuring stability Initiatives to build robust financial stability indices have thus far not been good enough or easily understandable by the market.
Moreover interpreting them with sufficient precision in order to home in on remedial areas in need, has been a fuzzy exercise. The concept of financial stability involves various financial intermediaries, financial market segments and infrastructure, for which a whole host of different quantitative and qualitative indicators can be used. As a consequence, determining the degree of financial stability remains a highly integrated complex task.