The CNB analyses systematically the main risks to banking system stability stemming from the macroeconomic environment of credit institutions and the situation in the main borrowing sectors, as well as credit institutions’ ability to absorb potential losses should these risks materialise.
Financial Stability is the main CNB publication which presents the results of analysis performed, warns about the main identified systemic risks to the stability of the financial system as a whole and discusses the measures taken by the CNB to preserve financial stability. In view of the predominant role of the banking sector in financing the economy, the analysis focuses on this segment of the financial system.
The purpose of Financial Stability is systematically to inform financial market participants, other institutions and the general public about the vulnerabilities and risks threatening the financial system in order to facilitate their identification and understanding as well as to prompt all participants to undertake activities providing appropriate protection from the consequences should these risks actually occur. It also aims at enhancing the transparency of CNB actions to address the main vulnerabilities and risks and strengthen the financial system’s resilience to potential shocks that could have significant negative impacts on the economy. The purpose of this publication is also to encourage and facilitate a broader professional discussion on financial stability issues. All this together should help maintain confidence in the financial system and thus its stability.
In addition to analyses, opinions and recommendations regarding financial stability and systemic risks, published within Financial Stability and other regular publications, the CNB may issue specific recommendations or warnings to draw attention to identified systemic risks or propose measures to prevent such risks, reduce their consequences and strengthen system resilience.