The Financial Stability and Necessity for Its Monitoring In Context to Economic Resilience Approach Governing the Iranian Economy

In recent years the international financial system has become so complicated that it has generated increasing challenges and costs for policy makers to identify and assess the various risks which may encounter thereto. Nonetheless, compared with the analysis of monetary and macroeconomic stability, the enquiry for financial stability is still in its infancy. In fact, there is no any widely accepted concrete model or comprehensive analytical framework for measuring the financial stability in the economic literature yet. In this context, only those financial indicators have been developed which could provide the appropriate warning signals to policy makers regarding the existing potential quandary in the real economy per se. Hence the prevailing frameworks for ensuring the international financial stability which is combination of private market discipline and public prudential supervision, have not kept pace with the modernization and globalization of financial market in toto. Besides, adaptation of prophylactic contrivances against the menace of systemic risks in financial sector and provisioning the robust structure for financial institutions to mitigate the incidence of financial crises could constitute the essential elements of financial stability packages Ipso facto. In this paper, an attempt is made to investigate de facto the financial stability indices and the measures for its proper monitoring. The results prima facie indicate that most of the countries in the world have chosen the financial stability as one of their main economic goals which to be implemented Sui generis. Thus, since the financial stability in the economy is considered to be the pillars of economic resilience principle, it is necessary to estimate and monitor the efficacy of financial stability indices in the Iranian economy Sine qua non.