Financial stability is a situation in which the financial system (institutions, markets and infrastructure) features three characteristics:
The stability of the financial system is crucial for Banco de la República. Without it, the performance of the economy is jeopardized, making it difficult for the Bank to achieve its constitutional objective of keeping inflation low and stable.
Naturally, achieving financial stability depends on the coordinated efforts of multiple authorities, as well as the performance of the institutions that make up the financial system. Banco de la República, as the credit authority for the Colombian economy, promotes financial stability through three strategies that pursue each of the three characteristics mentioned above. Specifically, it:
The Financial Stability Department at Banco de la República has an academic research agenda that is intended to explore the various aspects and interrelationships that are relevant to an analysis of financial stability. These aspects, among others, help develop the monitoring tools used in that analysis. Consult our research webpage for a list of working documents on the subject that are available online.