It is against this background that we present today our current assessment of financial stability in Ireland and outline our role in contributing to stability in the domestic financial system. What is financial stability? Let me begin by briefly defining financial stability.
Financial stability exists where the various components of the financial system, such as financial markets, payments and settlements systems and financial intermediaries (such as banks), function smoothly and without interruption and with each component resilient to shock. In simple terms, a stable financial system is one that is able to absorb shocks.