Our experts think of financial stability as a condition in which the financial system, including financial intermediaries, markets and market infrastructures, is capable of withstanding shocks and the unravelling of financial imbalances. Only a resilient financial system is able to support the real economy during a potential shock. The definition of financial stability is quite broad, I have to admit.
Governor Jalan said in the inaugural address to this Conference: “There is greater awareness now of the need to prepare the banking system for the technical and capital requirements of the emerging prudential regime and a greater focus on core strengths and niche strategies.”  Introspection Introspection is seldom structured and not really conclusive.