What is financial stability?

The financial system is at the heart of the economy. It enables people to save, borrow, invest and hedge financial risks that they are unwilling to bear themselves. A stable financial system guarantees that payments can be made securely and quickly. These services are often taken for granted, even though they are essential to the functioning of the economy. This is why DNB is committed to maintaining a smoothly operating financial system that is sufficiently resilient to shocks and contributes towards creating sustainable economic growth in the Netherlands.

What do we mean by a stable financial system? A stable financial system continues to operate as required during economic slowdowns, if banks or pension funds run into trouble, or amid bearish stock markets. We cannot allow the financial system itself to become a source of disruption in the economy. A stable financial system also provides for sufficient financial buffers. This is how it contributes towards stable and sustainable economic growth.