In a March 2016 report, Fitch rating agency mentioned following: “More stable banking systems tend to be structured around a number of large 'pillar' banking groups. These large banks in a consolidated banking system enjoy scale benefits leading to better diversification of risks and stronger overall profitability contributing to higher credit ratings.” 6.
Financial stability and the role of central banks Central banks have always had a keen interest in financial stability, irrespectively of any specific statutory financial stability mandate.