These de facto arrangements, proven to be workable, are coming into effect through legislative sanction only on April 1, 2006. Financial stability Financial Stability is difficult to define and thus difficult to measure.
Basically, it refers to the smooth functioning of the financial markets and institutions but it does not mean absence or avoidance of crisis but presence of conditions conducive to efficient functioning without serious disruption. The relevant legal, institutional and policy frameworks are wide ranging and policy instruments at the disposal of authorities very varied.