Financial stability Internet Collection

By: Alaa Babiker

According to IMF; “financial stability is a condition in which an economy’s mechanisms for pricing, allocating, and managing financial risks (credit, liquidity, counterparty, market, etc.) are functioning well enough to contribute to the performance of the economy (as defined above)”.

The European Central Bank also defines Financial Stability “as a condition in which the financial system – which comprises financial intermediaries, markets and market infrastructures – is capable of withstanding shocks and the unravelling of financial imbalances”.

RocketMoney states; “Being financially stable means you have enough money coming in to cover your expenses, as well as some extra funds to put aside for savings or potential crises. You continuously save money, you have paid your high-interest debts and you don’t fret about emergencies because you’re financially prepared”.

To achieve financial stability at a personal level, Discover.com advices: “Six steps to financial stability:-
1. Spend less than earn. Living within means is a cornerstone of financial stability.
2. Save for a rainy day.
3. Invest for the future.
4. Pay off debt fast.
5. Invest in oneself.
6. Boost credit score”.

Serving in a country system “Maintaining the stability of the financial system is a longstanding responsibility of the Reserve Bank. A stable financial system is one in which financial institutions, markets and market infrastructures facilitate the smooth flow of funds between savers and investors” as stated at RBA.

Whereas the financial stability of a country is measured as an “Economic stability whish is measured by using GDP, inflation, fiscal deficit, trade deficit, interest rates, employment levels, income inequality, and cash flows” according to Wall Street MOJO.

To conclude these important financial statements, we would like to point out and recommend few aspects to be considered in the next phase of Sudan nourishment, all for the purpose of increasing the country’s financial stability:-

1. Build strong infrastructure of Sudan Central Bank in at least 4 different states of the country.
2. The expansion of ambitious youth employment.
3. Reduce inflation by all different means, including the intensification of internal production.
4. Rebuilding of Sudan major infrastructures; including Banks to be located in different states and of the same capacity.

In the end, may God grant wisdom upon our leaders to end this war.