And I’ll comment on the implications of these reforms for pension funds. Just to be clear, the reforms are not targeted at pension funds, which were a source of resilience during the crisis. Rather, they address the serious fault lines exposed by the crisis.
All financial sectors, including pension funds, stand to benefit from the reforms, which will reduce the likelihood and adverse impact of future crises. Financial stability: its importance to pension funds Why is financial stability important for pension funds? To answer this question, let’s start by defining what we mean by financial stability in this context.