This committee is supposed to define, monitor and assess systemic risks; examine risks and exposures in the financial system in order to  BIS central bankers’ speeches  3  identify and assess systemic risks; promote the exchange of information among the financial regulatory authorities and between them and the stabilizing institutions (the Bank of Israel and the Ministry of Finance); improve the coordination and cooperation between the financial regulatory authorities and the stabilizers in analyzing evaluating, developing and operating tools and methods to prevent and reduce systemic risks; issue warnings when a systemic risk could become a material risk; make recommendations of measures to prevent or reduce systemic risks that are identified; and track the actions taken as a result of the warnings and the implementation of the recommendations (slide 15).
It is proposed that the staff work for the committee be done by the Financial Stability Division that was recently established in the Bank of Israel Research Department, with the aim of acting to promote financial stability which, according to the new Bank of Israel Law, is one of the Bank’s goals.