In addition, this aspect has gained importance since financial turbulences seem to have become more frequent in past decades owing to accelerated growth in financial transactions and the greater complexity of new financial instruments. Third, financial stability is closely linked to a central bank’s interest in the prudent design and management of the payment and settlement systems which process its currency.
The Eurosystem, for instance, has the statutory task of promoting the smooth operation of payment and settlement systems. Against this background, referring to financial stability analysis as a new trend among central bankers would be something of a misnomer. Indeed, financial stability analysis is anything but a passing fashion.