An overview of the operation of institutions, products and markets which make up the financial system and discusses the role of governments, both domestically and internationally, in the management of ...

First, market discipline may have been undermined by the existence of financial safety nets such as deposit insurance and lenders of last resort, and many financial institutions may now be considered ...

Major instability can lead to bank runs, hyperinflation, or a stock market crash. It can severely shake confidence in the financial and economic system. Firm-level stability measures A common measure ...